Are Stocks Currently Cheap? |
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Perma-shills have been claiming of late that the stock market is now trading at an enticing valuation. Their main evidence for this, as they are fond to claim, is that the forward Price to earnings multiple is 12 times next year’s earnings for the S&P 500. And, of course, a 12 PE multiple makes stocks cheap and the overall market a buy. But for investors who want to accurately assess that number, there are two issues they should be aware of. First, the PE ratio isn’t a good measure of the
Filed under: Fundamental
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