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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (136114)	8/23/2013 7:41:22 AM
From: Alex MG	Read Replies (1) \| Respond to of 149317

more doom and gloom crap but I do believe US stocks are wildly overvalued by historical measures Stocks: Cheap or Expensive? by Barry Ritholtz - August 9th, 2013, 11:30amn Source: BofA Merrill Lynch US Equity & US Quant Strategy Merrill Lynch’s quant team looked at 15 metrics* that measure equity valuation (above). Their conclusion? Stocks are not overvalued; indeed, by most metrics, they are fairly valued. Key bullet points: • S&P 500 has been playing catch up to other indices; • 14 of 15 measures say S&P 500 is fair to undervalued; • Only the Shiller P/E suggests stocks are expensive; • Four rotations underway are underway (that imply where best values might be found); One worthwhile thing to add: I have been warning certain emailers/pundits/bears who seem to look at the Shiller P/E — and ONLY the Shiller P/E — that they are engaging in some confirmation bias in their metric selection process. I cannot say that stocks are cheap here, but they also are not wildly overvalued. What happens going forward will depend on earnings — will they rise as the economy achieves escape velocity? Will they fall 30% as the economy tips into a recession. The answer to these questions are here.