What If U.S. Stocks Stay Expensive For Years?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Grt2bOutdoors
Posts: 17138
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: What If U.S. Stocks Stay Expensive For Years?

Post by Grt2bOutdoors » Thu Sep 14, 2017 7:49 am

Ari wrote:
Thu Sep 14, 2017 12:24 am
Seems pretty straight-forward to me, really. Higher P/E means lower earnings per invested dollar. Of course returns are going to be low. I don't think the predictive power of CAPE when it comes to future earnings has much if anything to do with mean reversion. You simply have to pay more for the same amount of return.
Buy value and you won't have the problem of lower earnings per invested dollar. There are pockets of value out there, you just need to find them. :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Post Reply