Mohan, one moment, assuming I was a socialist, would I be barred from these interesting discussions (g)?
My point was not directed to the question of "fair" or "unfair" taxation, my point was (with Tommaso) as to fair valuation based on dividends. The current tenor of the bears is that the market is "extremely" overvalued, what with a PE of 20 to 22 and with dividend yield of 1.6%. I pointed out that stock buy backs when valued as tax free dividends provide a true pre tax yield of about 4% to 5% which is quite high by historical measures, and if interest rates would indeed go to 5.5% by June, as I have been known to suggest, than we will have a market which (if it is then indeed at 6200 as I have been known to suggest as well) will be quite undervalued.
Now, Mohan, let's talk about socialism? (VBG).
Zeev |
