An article on historic stock valuations, hedge funds etc. I've been reading the weekly articles for years and John Mauldin doesn't pressure you into buying anything.
Thoughts from the Frontline
Thoughts from the Frontline
Stock Market Valuations
- Thread starter RockOn
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clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Good stuff Rock On, I've heard of John Mauldin before but haven't read any of his writings.
Of course the trick is to figure out what the S&P earnings actually are and/or going to be. John is saying the S&P 500 PE is 23 which corresponds to a real return of 3.2% historical. On the other hand the WSJ and the Standard Poor has the current P/E of 16.5 which gives a real return of ~6% by historical measure.
On the other John isn't just making the P/E ratio of 23 up. Because S&P estimate for Q2/2008 has the PE ratio of 23.
So once again is the market fairly valued or overvalued? well that depends on future earnings....
Of course the trick is to figure out what the S&P earnings actually are and/or going to be. John is saying the S&P 500 PE is 23 which corresponds to a real return of 3.2% historical. On the other hand the WSJ and the Standard Poor has the current P/E of 16.5 which gives a real return of ~6% by historical measure.
On the other John isn't just making the P/E ratio of 23 up. Because S&P estimate for Q2/2008 has the PE ratio of 23.
So once again is the market fairly valued or overvalued? well that depends on future earnings....
