User 286994

Cheapest Valuations in Decades Will Trump Panic Selling

How can you talk about valuations when nobody has any idea what earnings are going to look like in the next few quarters. The bursting of the credit bubble, and that is exactly what it is, may cause economic disruptions that we have not seen in our lifetimes. If the economic downturn is severe enough -- and the opinions are all over the place -- then earnings in the next few months could make current valuations look awfully pricey.