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TMFHousel (89.82)

Silly Quote From a Barron's Article



August 22, 2010 – Comments (8)

"For some risky assets, including equities, valuations are as attractive as they have been in 10 or 12 years" 

Hear that? Last time stocks were this cheap was 1998-2000, when they traded at 10 gazillion times earnings.

On that note, the world hasn't been this peaceful since at least 1943.  

8 Comments – Post Your Own

#1) On August 22, 2010 at 9:19 PM, goalie37 (92.51) wrote:

+1 rec

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#2) On August 22, 2010 at 9:20 PM, goalie37 (92.51) wrote:

I'm also not sure how they would argue that stocks are cheaper than the 2009 bottom.

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#3) On August 23, 2010 at 12:08 AM, TMFAleph1 (94.10) wrote:

Ha ha... Excellent! I read the article but didn't pick up on that... I guess he lost me at "attractive..."


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#4) On August 23, 2010 at 2:16 AM, awallejr (63.02) wrote:

Well couldn't read the whole article since I don't subscribe, but if you use projected future PEs, which many prognosticate at around 12, then yeah the market is cheap.

People are runing to bonds right now since the aging of America is kicking in.  Afterall as you get closer to retirement, higher bond allocation is generally advised. But there are a ton of cheap stocks in my opinion which have little debt and pay nice dividends.

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#5) On August 23, 2010 at 2:35 AM, starbucks4ever (98.64) wrote:

I understood this sentence as saying that during the last 12 years we've never had a time when valuations were more attractive than today although we may have had one or several times (presumably 2003, 2008, and 2009) when they were equally attractive. An incorrect reading by a non-native speaker?

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#6) On August 23, 2010 at 10:17 AM, Gemini846 (53.05) wrote:

With this recent "correction" I'm expecting before too long we'll start another leg up that will hold on for 5-6 months before the market begins to crash and burn. The finger pointing in Washington will continue. The finger pointing over the Atlantic and over the Pacific will continue. The endless wars will continue.

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#7) On August 23, 2010 at 1:21 PM, PhulishMortal (< 20) wrote:

zloj, I am a native speaker and I interpreted it the same way as you.

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#8) On August 25, 2010 at 10:45 PM, truthisntstupid (97.84) wrote:

Looking at 5-year high PE's, 5-year low PE's, and current PE's might lend some credence to it depending on which company you're looking at.

Let's see....70 times earnings for KO in 2000....yeah, I guess it's more reasonable now...

Hershey...5-year high PE, 61...5-year low PE, 15.9...current PE is 22.6

WMT 5-year high PE, 20.1...5-year low PE, 12.5...current PE is 13.2.

So maybe it would make sense if it weren't for that pesky time in 2009 when we had that stock market garage sale....

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