Monday 25 January 2016

Stocks cheaper, but maybe not cheap enough

Alex Rosenberg at CNBC thinks that after the recent selloff, stocks may actually be cheap.

One measure of the forward P/E of the S&P 500 shows it to be 15, lower than the 15-year average forward P/E ratio of 15.7.

John Hussman is unimpressed.

In his latest article, he says that after the market decline of recent weeks, "valuation measures remain roughly 80-90% above the norms that have been reached or breached by the completion of every market cycle in history".

In addition, the 12-year prospective S&P 500 total return remains at just 2.5 percent annually in nominal terms

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