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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (51558)	5/18/2013 12:19:52 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78666

OT: I'm willing to commit a few dollars to stocks in this market that still look reasonably valued. Maybe they're not value stocks -- perhaps more growth-at-reasonable-price, or maybe just relatively less pricey than other stocks. Small tracking position for me today in British Sky Broadcasting. finance.yahoo.com

To: Spekulatius who wrote (51558)	5/20/2013 1:29:10 PM
From: Dennis 3	Respond to of 78666

<1999 dor that matter was very different, the bubble was in tech and internet stocks> S&P 500 was trading at ~30x times earnings in 1999. S&P 500 is not just tech/internet stocks. The point is this market is not overvalued. Here is why the market could go higher: 1. stocks not overvalued.(S&P avg) 2. The avg rate of return on equities is 7%. 3. low interest rates. they will stay low until economy recovers per fed.(unemployment comes down) 4. Equity rate of return calculation - CBO projection for gdp is 2.4. Inflation target is2.5(mayb higher). 2.4+2.5=4.9... Historically corporation pays out 60% profits in div/share buy back. So 4.9 +4.6 = 9.5 adj for inflation 7.0 The only reason this market won't move higher is recession. I am still able to find value stocks. I am just running out of funds to invest in them.