Market PE

Just a quick note on a matter way back. I have been away in the Emerald Isle where, incidentally, although not a big economy, I was glad to notice Skechers was prominent in the shops.

I saw that there had been comment on my assertion on market over-valuation to the effect that, if you took out Amazon, it left the market on ‘only’ a PE of 18! This revelation seemed to afford great comfort but not to me.

In view of current global considerations, world debt to GDP first and perhaps US government war on enterprise last (highest corporate tax rates on the planet; massive increases in employer red tape, the encouragement of suspicion of business motivations) with a dozen greater horror stories in between, I would be reluctant to accept this (near completely) artificial market deserves a PE greater than 12 and that might be pretty rich all things considered. Some percentage drop from the Amazon-eliminated index. That, as I never tire of pointing out, is why we are here. Thank you Saul. Although I would run a mile from most of your holdings, you certainly present some interesting stories and SKX is a good example of one that would not have come through my screens and I am glad to have in my portfolio.

Best of all, coming back from vacation, I find my holding in SKX is in the black at last!