Topics

Stocks are Actually the Cheapest They've Been in Decades

Stocks are Actually the Cheapest They've Been in Decades

2011-05-24
Source: Daily Wealth

Related Tags:


With the exception of the bust of late 2008-early 2009, U.S. stocks are now the cheapest they've been in 20 years.
 
It might be hard for you to believe... But it's absolutely true.
 
It might be hard for you to step up to the plate and swing... but with history as our guide, that's the right thing to do. Stocks are cheap, and interest rates are low. It's a recipe for gains. Let's take a look...
 
The classic measures of stock market value are the price-to-earnings (P/E) ratio and the price-to-book (P/B) ratio.
 
Right now, the stock market (as measured by the S&P 500 Index) is trading at a forward P/E ratio of 13.5... With the exception of the bottom in 2008/09, we haven't seen a P/E ratio that low since 1990-91. And on a P/B basis, stocks are trading at a ratio of 2.3... Once again, except for the 2008/09 bottom, this is a level not seen in 20 years. Take a look:
So stocks are nearly as cheap as they've been at any time in the last 20 years. But it's actually much better than that...




Popular Posts

Previous


  • 2013-04-27
    Jynx Maze in a Red Bikini


  • 2013-04-27
    Miranda Kerr’s Ass


  • 2013-04-27
    Epic New Irina Shayk Beach Bunny Bikini Pictures


  • 2013-05-11
    Aikido Steven Seagal - The Path Beyond Thought


  • 2013-05-11
    2 Living ETs Working with US Government
Next

Related Posts

Like us on Facebook

Elsewhere in DazeNews

Like us on Facebook
1 1 1 1 1 1 1 1 1 1
Copyright © 2012 Dazenews.com
Share