From today's WSJ, 79 years ago (1930): "We believe that many stocks are now selling far below...
From today's WSJ, 79 years ago (1930): "We believe that many stocks are now selling far below their real value and that purchases can now be made with a minimum of risk and a maximum of confidence of higher prices later."
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Comments (5)
If we're treading the 1930's pathway it's time to find the next Homestake Gold mine.The returns during the depression were awesome:www.gold-eagle.com/edi...
this should be a daily thread....it would be interesting to see how we are going to follow it..
Fortunately we have market economists of the likes of David Rosenberg who assist us in keeping balanced perspectives:"After all, the forward P/E multiple on the S&P 500 at the lows was 11.7x. That was not a multi-decade low or some massive standard deviation figure — we were actually lower than that at the October 1990 lows when the multiple was 10.5x and frankly, coming off the 1987 collapse, the forward P/E had compressed to 9.8x. As it now stands, the multiple is back very close to where it was at the October 2007 market high, when the multiple had expanded to 15.0x. The range on the forward P/E over the last quarter-century is between 9.8x and 21.8x (excluding the tech bubble), so at 14.5x currently, it is hardly the case that this market can be viewed as a bargain. On a trailing earnings basis, the P/E multiple has actually widened, from 17.0x at the lows to 23.3x currently, a huge multiple expansion"
