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

To: MNTNH who wrote (55399)	6/3/2015 10:24:37 AM
From: Graham Osborn	1 Recommendation Recommended By E_K_S Respond to of 78744

A rather extraordinary article in this morning's WSJ - in it, our favorite central banker observes that hey! Equities aren't so overvalued after all: the S&P rose by about 1.2% each quarter from the end of the 2001 recession through the fourth quarter of 2007, the precrisis business cycle. If the S&P had continued to climb by the same rate, Mr. Bernanke's math tells him the S&P 500 would have sat at about 2123 in the first quarter of this year. That is three points above its first-quarter top of 2120 in February and 55 points higher than where the index finished the first three months of the year at 2068. I hereby rename the Bear! thread the Bernanke Doctrine. To ice the cake, the article notes the S&P's P/E ratio to be 16.9. For an "alternative" view, check out Graham's method for valuing the S&P at: advisorperspectives.com The Graham multiple is a more appropriate 26.9. And that's leveraged earnings mind.