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Currently every stock I research is trading at 20+ p/e multiples and trading at their 52week highs. Isnt there some overoptimism in the market? I wonder how some major catalyst can hurt current prices.
Where are the value plays today? Graham and dodd people please advise
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Is a 20 pe really so outrageous? The market pe looks to be around 17, barely above the 50 year historical median.
http://bigpicture.typepad.com/commen...sp_500_50.html
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Inflation is somewhat lower than it's been in the past 40 years, on average. Given normal circumstances, the market PE should be lower than the median.
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Growth is cheaper than it was 40 years ago, pe should be higher. We could go back and forth with this all day I bet.