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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Freedom Fighter who wrote (596)8/10/1998 1:31:00 PM
From: Axel Gunderson  Read Replies (2) of 1722
 
Wayne:

The objection that I have when A. Cohen (or any other) states that the market is over or under valued is that they don't give their reasons, or even state what fair value is. The question I would pose to A. Cohen, given the opportunity, is at what level would you consider the market to be overvalued?

While I am very aware that over any decent period of time, stocks have historically outperformed other assets, if capital is allocated accordingly, then at some point equities will be priced to return the same as competing asset classes. Thus I think it behooves those who very publicly opine on valuation to also offer the basis for their opinions.

Axel
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