Year End Stock Market Valuations 1927 - 2008
Quote:
Originally Posted by
winner69
This article suggests that the S&P trading at about 29 current earnings estimates but really is trading at something like 57 times expected earnings ...... ouch
No reason to get too excited .... even if the glass is half full
...further confirmation that equity prices are NOT EVEN NEAR HISTORICALLY NORMAL LEVELS (see attachment) despite the rantings of currently dry-docked institutional investors to the contrary!!!
...this is still very much THE BEAR... and asset price deflation will not stop until the last bit of hot air is squeezed out of the bubble... no matter what the GOV-FREAKS are churning around in their 'leaky syndrome brains'...
Trading Strategy: BEARISH -short to medium-
short hedged accumulating ~858 (+);
-accumulate stocks -medium to long term- on fresh market lows
Hussman: There is No Substitute for Mortgage Debt Restructuring
...From a valuation standpoint, I do believe that the stock market remains undervalued (though still far from the deep undervaluation we observed in say, 1974 or 1982). Accordingly, I do expect that long-term investors are likely to achieve reasonably good returns in the area of 10% annual total returns over the next 7-10 years. However, we have to be well aware of the tendency for weak markets to overshoot on the downside, so we continue to be unable to rule out even the 600 level on the S&P 500 as a possible (though not an expected or predicted) outcome.
http://www.hussmanfunds.com/wmc/wmc090209.htm
Kind Regards