Posted on 01/23/2016 3:03:19 PM PST by Lorianne
Hard to believe, but the Dow Jones Industrial Average DIA, +1.38% could fall by another 1,000 to 5,000 points and still not be “cheap†compared with long-term stock-valuation measures.
That’s the stark conclusion from an analysis comparing current stock prices to underlying measures such as per-share revenue, earnings and corporate net worth
(Excerpt) Read more at marketwatch.com ...
Oh ya... here come the glood and doom crowd. Psst. It’s a GOOD time to buy stocks.
With all the liquidity, I think the bottom will be around 11,000. Until then, FAZ buy at $54 or lower.
Not necessarily.
When a store jacks up its prices by 200% and then has a sale offering you 50% off, you are still overpaying. This could be like that.
Don't look at the world and don't look at China. Look at the phenomenal leaps forward that technology is making.
Not all good, but then change must be dealt with...be managed.
Humans are on the edge of the precipice.
Humanity is about to change. Business is about to change.
Get ready...spiritually.
How do you want to change?
Who do you Freepers want to be in this new world?
My suggestion is...be Godly.
Yes. We always value stock prices based on revenue per share....and absolutely not on earnings or dividend rates....or projected net income or market share....sheese.... I bet this guy has his money in passbook savings at an S&L...
62 years old and I never tire of the buy high sell low crowd that thinks they know what the market is going to do and how it’s all a big rip off....
Meanwhile my Vanguard accounts are doing reasonably well even with this down turn.
There are still few good other places than the stock market for the trillions of newly- printed Monopoly game dineros
Current PE ratio for the S&P 500 is roughly 20. To me, that is a “normal” valuation. Drop to 18 and you are looking at some possible bargains. Drop to 16 or less and then we can start using the word “cheap”.
So buy hotshot. What’s stopping you?
It’s fun, but I’m usually tragically WRONG. One thing I’ll literally bank on is the inevitable monster crash. I think we’ll both see it in our lifetime. Glad you have good guys at Vanguard! Best, Billy
As interest rates rise, and they will, stocks will fall. The bond market will be attracting some of the money now in equities once yields go up.
And I never tire of the buy and hold crowd. Go figure.
That was the bottom a few years back - sounds right to me.
How does that work, when different industries have different profit margins? Grocery stores have lots of revenue, but they have razor-thin margins, while luxury-goods makers have a fat profit on each watch or handbag they sell.
What a little punk reply. What makes you think he’s NOT, junior?
Stocks have historically been compared to bonds to gauge valuation as they should because bonds are an alternative investment. When you can buy blue chip stocks yielding much more than treasury bonds, AT&T for example has over a 5% dividend, it is hard to say stocks are overvalued. Just my opinion, of course.
True. I got lucky and called the bottom in 2009. Made $123,000! (I have $200 in my bank account, literally, today, because I still refuse to touch it.)
Not much revenue.
Junior? Punky? Lol. I don’t care if he is buying or not. And that goes for you too Mr. Infidel. Anybody that follows anonymous internet advice on buying or selling equities gets what they deserve, right?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.