Tuesday, August 3, 2010

Update: Is the Stock Market Cheap?

Great analysis and use of the 10-yr. average earnings principle. The P/E10 graph is a great illustration of how we never came out of the 2000-2002 recession because Greenspan et. al. did not let it run its course -- stocks were overvalued throughout the last decade (and may be for the next decade if the current administration's track record is any indication of future monetary policy).

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