Re: Everything is overpriced?
I always find the PE argument interesting b/c it is all based on what the market supports. I know the Nikkei had PE's around 50 and it was considered quite normal. Change from the historical mean doesn't necesarily mean things ar overvalued. Value is relative to investors desires to own these stocks. At the same time, I am not proposing the "dot com", this is a new economy idea.
Mainly, I am just asking why you think these historical PE averages are correct? Value is not intrinsic, it is a supply and demand issue, and there is always a chance companies have been undervalued in the past.
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