DOES IT MATTER IF STOCKS ARE CHEAP? There seems to be a never ending debate these days about the “value” of the market.
The bulls cite trailing earnings to show low valuations while the bears generally cite forward earnings or cyclical data as evidence that the market might be expensive. I’ve never found much value in P/E ratios or other such “value” metrics for that matter. And honestly, unless you’re Warren Buffett or a hedge fund with access to the Board of Directors or other inside info you’re battling armies of analysts using the same metrics in the same manner.
Netwerkeconomie. Pro dollar. One of my much appreciated contacts is Steen Jakobsen, chief economist for Saxo Bank in Copenhagen, Denmark.
Today he passed on an "internal note" that he gave permission to share. For ease in reading, I will not follow with my usual indented blockquote format. European equities – trick or treat?