Mike, I totally disagree. There are many other much better opportunities than the overpriced fluff stocks in the US. Asia is dirt cheap. Latin America is cheap. Africa and Eastern Europe are near bottoms. Commodities are at multi-decade lows.
Believe me, folks will find these areas again. Just as in the early years of this decade, nobody wanted to touch a US tech stock and "emerging markets" were the ONLY investment opportunity available (because they were then the overpriced area). This stuff changes and there are plenty of investment areas that offer much better risk reward tradeoffs than the US Nifty Fifty offers at this time.
In fact, last year, when this manic junk was going to stratospheric pe ratios, markets in Korea, Spain, Portugal, Italy, Ireland, Greece, Germany and Denmark kicked our markets butt.
A decade or so ago, you could buy third world stocks growing at 20% for 5-8 pe ratios. Then you went into a period where they were growing at 5% and selling at 20 times. The US was a better relative deal. But nobody wanted to hear it at the time. Right now, the third world and even European countries are mostly a berter deal than the US market. People do not want to hear it, of course. But, as our corporations continue to show little or no eps growth while multiples are at nosebleed levels, even the dumb money will eventually catch on that there are other places to be that offer a better deal.
Never think there is no alternative to buying overpriced crap. You can join me and buy underpriced crap. <G>
MB |
