1. The stock market is already expensive.
Stocks are about 20 times cyclically-adjusted earnings, according to data compiled by Yale University economics professor Robert Shiller. That's well above average, which, historically, has been about 16. This ratio has been a powerful predictor of long-term returns. Valuation is by far the most important issue for investors.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment