(Sorry, no Texas governors and dog-whistle political topics in this post…)
“Wharton’s Jeremy Siegel says the struggling stock market now looks attractive for long-term investors”
“I like the market long term,” said Siegel, who has been critical of the Fed for waiting too long to raise interest rates and end monthly asset purchases. “The S&P is 18 times … forward 12-month earnings. That’s very cheap. Ex-tech, it’s 15 to 16 in a low interest rate in environment. Even with the Fed tightening, that looks good.”
In a calm, stable market those may be reasonable multiples. But when a bubble bursts, the market can plunge much lower.
But when a bubble bursts, the market can plunge much lower.
How true! Margin calls, people flying to the safety of gold, or abandoning the market entirely. One can only see the bottom in retrospect. This is a good time to do nothing.
The S&P is 18 times … forward 12-month earnings. That’s very cheap.
How can anyone trust forward earnings? There have been instances when past earnings couldn’t be trusted.
Since when is a PE of 18 that cheap? Cheap means a PE in the single digits. Oh, wait, the Blair Witch has been propping up the stock market bubble for so long that what used to seem expensive now seems cheap.