Dan, if I recall what I read an hour ago, over dinner and wine, the S&P is 20% overvalued based on trailing earnings, and fully valued based on projected future earnings. So, in essence, it is already fully valued now IF the companies fulfill their projected potential this year. (not my projections). Implicit would be that they are overvalued based on future, if they do NOT perform, and undervalued, if they out perform.
In response to " Who wants to wait for the earnings to be realized and miss the opportunity to buy at what appears to be a discount to future fair value."
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PS, what intrigues me, is that with a 48, there is still a contraction occuring, albeit decelerating, not an expansion.
My glass is less than half full, and is STILL emptying, not filling. I wish to see some sustained growth, before getting too enthusiastic.
S. |
