Buffett's favorite market tool is flashing red
This little-known valuation metric has entered familiar territory. Here's why investors should share the Oracle of Omaha's concerns -- and how they can protect themselves.
We don't need Buffet to tell us that stocks are overpriced. Market values, corporate profits, stock buybacks, asset and commodity values, interest rates... are all based primarily on the fed's free phony money. To them the problem in 2008 wasn't the fact that housing and stocks were over priced, it was that they dropped in price. So of course their solution is to pump the prices back up. Well here we are back at 2007 prices. But they have done nothing to address the underlying problems in the economy.
Well written, thought out article, without the histrionics I have come to expect from Anthony Mindinhari (sp) or Bill Fleckenstein. The article outlines the risks and rewards, and gives a reasoned opinion as to how to allocate (or re-allocate) ones investments.
I, for one, appreciate investment advice given in this manner.
QE,QE,QE,QE,QE,QE,QE, It is not a matter of if it is just a matter of when! How bad is the Obama liberal policies going to hurt everyone? Especially the poor, Retired, middle class and the minorities!
These are all the same people who vote based on two factors : 1st for the minorities Obama appears Black, Two: Obama promises to "get" the rich, to make them "pay" there share (even though most of the middle class down pay nothing) and the government will help you out> Free rent, free food, free phone, free medical, Vote for Obama , it is not you fault, let the government take care of you! Just remember to vote democrat!
We all know those evil republicans will pass laws that promote the "free market" not the QE government controlled market. Jobs will come back and wages will be based on your skill level , your education and you actual work performance, not some union scale with promotions based on those who just "show up" the longest.
So if you like living off the government being told where to live , what you can eat, drink and wait for some 3rd rate government doctor then Barack Obama and the progressive liberal socialist party is for you.
If you want to work and get ahead, to contribute instead of always taking (like the Obama supporters) if you want to be able to take vacations, have a nice house that you own, a good car and safe neighborhood then vote republican !
Not all investment advice is good, but all of it is good for learning. In 2008 I began to apply some of the things I have gleaned from guys like Buffet and Bogle. I am not disappointed with their methods and results. You have to start some where, These ways are not a bad way to start. We'll see if I've really learned anything when the next bear starts foraging on my retirement savings. I am only five years from my target date.
I'd rather be good unless I can be good and lucky.
besting investing to all..
I think the article provides worthwhile information, and Buffet may have a point...
Sorting it all out is the difficult part, times have changed for various reasons and considering all the variables takes more than a few minutes of one's time.
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Tighter regulations and the end of a lengthy bull market in bonds have changed the landscape forever.
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