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bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | cad1cb6f9c0a427a87861001e6805e17 | 1,664,388,991 | 1,664,421,304 | 9 | 10 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.02 | 32,313 | 1.111111 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 7877ff7b3c7548f6816d21417d3fb012 | 1,664,388,991 | 1,664,421,492 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.020833 | 32,501 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 64b7c95d9f86450982a32a1c6c284513 | 1,664,388,991 | 1,664,421,946 | 9 | 61 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.071429 | 32,955 | 6.777778 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 05bcc363021e434486ff64470e4453ca | 1,664,388,991 | 1,664,425,267 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.027397 | 36,276 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 1356bedd9e74419f928ebce8b9398e9b | 1,664,388,991 | 1,664,453,654 | 9 | 10 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.02 | 64,663 | 1.111111 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 3d79232b22b14585814dffa2fbde14ad | 1,664,388,991 | 1,664,456,373 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.027397 | 67,382 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | e80df6117ce6437ea392b42dff73a9ce | 236bfae6b9594ec591f143b72228aa25 | 1,664,388,991 | 1,664,460,440 | 9 | 123 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.04 | 71,449 | 13.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 48f1aaea5d574a2eb560fb80bbcc522e | 1,664,389,131 | 1,664,409,837 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 20,706 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 5e444a99850e40729343af95b86746cb | 1,664,389,131 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 26,377 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,389,131 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 29,883 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,389,131 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 30,069 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 7423689401e64c1faf8495d68522fb0d | 1,664,389,131 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 31,829 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,389,131 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 32,132 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,389,131 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 32,815 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 243bc65054244b71b25feff5e3486bb5 | 236bfae6b9594ec591f143b72228aa25 | 1,664,389,131 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 71,309 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 5e444a99850e40729343af95b86746cb | 1,664,391,093 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 24,415 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,391,093 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 27,921 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,391,093 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 28,107 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 7423689401e64c1faf8495d68522fb0d | 1,664,391,093 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 29,867 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,391,093 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 30,170 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,391,093 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 30,853 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | f4fe3b8302ed400ba5588937918d0070 | 236bfae6b9594ec591f143b72228aa25 | 1,664,391,093 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 69,347 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 5e444a99850e40729343af95b86746cb | 1,664,402,062 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 13,446 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,402,062 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 16,952 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,402,062 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 17,138 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 7423689401e64c1faf8495d68522fb0d | 1,664,402,062 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 18,898 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,402,062 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 19,201 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,402,062 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 19,884 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | bbaae7beb4384be8a3ad2cfadb537069 | 236bfae6b9594ec591f143b72228aa25 | 1,664,402,062 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 58,378 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 5e444a99850e40729343af95b86746cb | 1,664,406,552 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 8,956 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,406,552 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 12,462 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,406,552 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 12,648 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 7423689401e64c1faf8495d68522fb0d | 1,664,406,552 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 14,408 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,406,552 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 14,711 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,406,552 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 15,394 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 95894f043b68403193b6411d76168ad6 | 236bfae6b9594ec591f143b72228aa25 | 1,664,406,552 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 53,888 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 087d1df5e93348ad81f02810947c9365 | 1,664,408,284 | 1,664,408,399 | 9 | 10 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.02 | 115 | 1.111111 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 48f1aaea5d574a2eb560fb80bbcc522e | 1,664,408,284 | 1,664,409,837 | 9 | 123 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.04 | 1,553 | 13.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 0b2011f116f345f787051cc9b0c31767 | 1,664,408,284 | 1,664,411,635 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.020833 | 3,351 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 5e444a99850e40729343af95b86746cb | 1,664,408,284 | 1,664,415,508 | 9 | 51 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.031746 | 7,224 | 5.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,408,284 | 1,664,419,014 | 9 | 61 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.071429 | 10,730 | 6.777778 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,408,284 | 1,664,419,200 | 9 | 51 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.031746 | 10,916 | 5.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 7423689401e64c1faf8495d68522fb0d | 1,664,408,284 | 1,664,420,960 | 9 | 61 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.071429 | 12,676 | 6.777778 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,408,284 | 1,664,421,263 | 9 | 51 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.031746 | 12,979 | 5.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | cad1cb6f9c0a427a87861001e6805e17 | 1,664,408,284 | 1,664,421,304 | 9 | 10 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.02 | 13,020 | 1.111111 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 7877ff7b3c7548f6816d21417d3fb012 | 1,664,408,284 | 1,664,421,492 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.020833 | 13,208 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,408,284 | 1,664,421,946 | 9 | 61 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.071429 | 13,662 | 6.777778 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 05bcc363021e434486ff64470e4453ca | 1,664,408,284 | 1,664,425,267 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.027397 | 16,983 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 1356bedd9e74419f928ebce8b9398e9b | 1,664,408,284 | 1,664,453,654 | 9 | 10 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.02 | 45,370 | 1.111111 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 3d79232b22b14585814dffa2fbde14ad | 1,664,408,284 | 1,664,456,373 | 9 | 17 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.027397 | 48,089 | 1.888889 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | beda5cc42101445a8c2d6f4282cb8ec9 | 236bfae6b9594ec591f143b72228aa25 | 1,664,408,284 | 1,664,460,440 | 9 | 123 | There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.04 | 52,156 | 13.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 48f1aaea5d574a2eb560fb80bbcc522e | 1,664,408,399 | 1,664,409,837 | 10 | 123 | Checks TSLA: P/E = 109
Seems fair.
/s
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.045455 | 1,438 | 12.3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 0b2011f116f345f787051cc9b0c31767 | 1,664,408,399 | 1,664,411,635 | 10 | 17 | Checks TSLA: P/E = 109
Seems fair.
/s
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.25 | 3,236 | 1.7 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 5e444a99850e40729343af95b86746cb | 1,664,408,399 | 1,664,415,508 | 10 | 51 | Checks TSLA: P/E = 109
Seems fair.
/s
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.01 | 7,109 | 5.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,408,399 | 1,664,419,014 | 10 | 61 | Checks TSLA: P/E = 109
Seems fair.
/s
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.033333 | 10,615 | 6.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,408,399 | 1,664,419,200 | 10 | 51 | Checks TSLA: P/E = 109
Seems fair.
/s
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.01 | 10,801 | 5.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 7423689401e64c1faf8495d68522fb0d | 1,664,408,399 | 1,664,420,960 | 10 | 61 | Checks TSLA: P/E = 109
Seems fair.
/s
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.033333 | 12,561 | 6.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,408,399 | 1,664,421,263 | 10 | 51 | Checks TSLA: P/E = 109
Seems fair.
/s
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.01 | 12,864 | 5.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 7877ff7b3c7548f6816d21417d3fb012 | 1,664,408,399 | 1,664,421,492 | 10 | 17 | Checks TSLA: P/E = 109
Seems fair.
/s
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.25 | 13,093 | 1.7 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,408,399 | 1,664,421,946 | 10 | 61 | Checks TSLA: P/E = 109
Seems fair.
/s
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.033333 | 13,547 | 6.1 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 05bcc363021e434486ff64470e4453ca | 1,664,408,399 | 1,664,425,267 | 10 | 17 | Checks TSLA: P/E = 109
Seems fair.
/s
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.045455 | 16,868 | 1.7 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 087d1df5e93348ad81f02810947c9365 | 236bfae6b9594ec591f143b72228aa25 | 1,664,408,399 | 1,664,460,440 | 10 | 123 | Checks TSLA: P/E = 109
Seems fair.
/s
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.045455 | 52,041 | 12.3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 5e444a99850e40729343af95b86746cb | 1,664,411,635 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 3,873 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,411,635 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 7,379 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,411,635 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 7,565 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 7423689401e64c1faf8495d68522fb0d | 1,664,411,635 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 9,325 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,411,635 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 9,628 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,411,635 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 10,311 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 0b2011f116f345f787051cc9b0c31767 | 236bfae6b9594ec591f143b72228aa25 | 1,664,411,635 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 48,805 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | c60691030f784f73a2a7245a5c18dbef | 1,664,411,801 | 1,664,412,997 | 6 | 17 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.142857 | 1,196 | 2.833333 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 5e444a99850e40729343af95b86746cb | 1,664,411,801 | 1,664,415,508 | 6 | 51 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.056075 | 3,707 | 8.5 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,411,801 | 1,664,419,014 | 6 | 61 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.102564 | 7,213 | 10.166667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,411,801 | 1,664,419,200 | 6 | 51 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.056075 | 7,399 | 8.5 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 7423689401e64c1faf8495d68522fb0d | 1,664,411,801 | 1,664,420,960 | 6 | 61 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.102564 | 9,159 | 10.166667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,411,801 | 1,664,421,263 | 6 | 51 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.056075 | 9,462 | 8.5 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | cad1cb6f9c0a427a87861001e6805e17 | 1,664,411,801 | 1,664,421,304 | 6 | 10 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.133333 | 9,503 | 1.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 7877ff7b3c7548f6816d21417d3fb012 | 1,664,411,801 | 1,664,421,492 | 6 | 17 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.142857 | 9,691 | 2.833333 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 64b7c95d9f86450982a32a1c6c284513 | 1,664,411,801 | 1,664,421,946 | 6 | 61 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.102564 | 10,145 | 10.166667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 05bcc363021e434486ff64470e4453ca | 1,664,411,801 | 1,664,425,267 | 6 | 17 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.035714 | 13,466 | 2.833333 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 1356bedd9e74419f928ebce8b9398e9b | 1,664,411,801 | 1,664,453,654 | 6 | 10 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Checks TSLA: P/E = 109
Seems fair.
/s
| 0 | 0.133333 | 41,853 | 1.666667 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 3d79232b22b14585814dffa2fbde14ad | 1,664,411,801 | 1,664,456,373 | 6 | 17 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Couldn’t agree more. Looks at these S&P 500 returns:
2019 +28.88%
2020 +16.26%
2021 +26.89%
90% cumulative return over 3 years and now it is down around 20-25%? Seems very reasonable - you are still up over 40% from Jan 2019. Nothing crazy and actually makes me feel more comfortable to see valuations finally coming back to earth.
| 0 | 0.035714 | 44,572 | 2.833333 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | dd480a80885e428ba4a21c8bd3714b23 | 1,664,411,801 | 1,664,458,090 | 6 | 9 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| There are reasons to be concerned. I am one of those people who believe that the current crisis stems from non-economic and non-fiscal causes. We are faced with two major black-swan events - Covid and Ukraine - that disrupt supply chains, consumption, globalization and many other factors. Climate change is another major phenomenon that can have a severe impact on valuation and stock markets. Unlike Covid and Ukraine, climate change fall-outs are likely to last many decades.
| 0 | 0.067797 | 46,289 | 1.5 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5949b1861f76437b82a0afc84869849a | 236bfae6b9594ec591f143b72228aa25 | 1,664,411,801 | 1,664,460,440 | 6 | 123 | Trailing P/E is a poor valuation metric for the total stock market/stock indexes.
Shiller P/E is considered a better indicator by many, as it takes market cycles into account. The S&P 500s Shiller P/E is still very high.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.09375 | 48,639 | 20.5 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 5e444a99850e40729343af95b86746cb | 1,664,412,997 | 1,664,415,508 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 2,511 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,412,997 | 1,664,419,014 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 6,017 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | d02f4b2f33c140b19c14586d0c271fc3 | 1,664,412,997 | 1,664,419,200 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 6,203 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 7423689401e64c1faf8495d68522fb0d | 1,664,412,997 | 1,664,420,960 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 7,963 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 1984f85974ef45fbb76bcfbd480375d7 | 1,664,412,997 | 1,664,421,263 | 17 | 51 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| 0 | 0.010204 | 8,266 | 3 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 64b7c95d9f86450982a32a1c6c284513 | 1,664,412,997 | 1,664,421,946 | 17 | 61 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.035714 | 8,949 | 3.588235 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | c60691030f784f73a2a7245a5c18dbef | 236bfae6b9594ec591f143b72228aa25 | 1,664,412,997 | 1,664,460,440 | 17 | 123 | I'm surprised to see this sub still use P/E to determine whether to invest or not.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.05 | 47,443 | 7.235294 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5e444a99850e40729343af95b86746cb | 7ed9a63057754fb6a14a614e1d69ce57 | 1,664,415,508 | 1,664,419,014 | 51 | 61 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.047619 | 3,506 | 1.196078 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 5e444a99850e40729343af95b86746cb | 236bfae6b9594ec591f143b72228aa25 | 1,664,415,508 | 1,664,460,440 | 51 | 123 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.030303 | 44,932 | 2.411765 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 7ed9a63057754fb6a14a614e1d69ce57 | 236bfae6b9594ec591f143b72228aa25 | 1,664,419,014 | 1,664,460,440 | 61 | 123 | Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.066667 | 41,426 | 2.016393 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | d02f4b2f33c140b19c14586d0c271fc3 | 7423689401e64c1faf8495d68522fb0d | 1,664,419,200 | 1,664,420,960 | 51 | 61 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.047619 | 1,760 | 1.196078 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | d02f4b2f33c140b19c14586d0c271fc3 | 236bfae6b9594ec591f143b72228aa25 | 1,664,419,200 | 1,664,460,440 | 51 | 123 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.030303 | 41,240 | 2.411765 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 7423689401e64c1faf8495d68522fb0d | 236bfae6b9594ec591f143b72228aa25 | 1,664,420,960 | 1,664,460,440 | 61 | 123 | Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.066667 | 39,480 | 2.016393 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 1984f85974ef45fbb76bcfbd480375d7 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,421,263 | 1,664,421,946 | 51 | 61 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.047619 | 683 | 1.196078 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | 1984f85974ef45fbb76bcfbd480375d7 | 236bfae6b9594ec591f143b72228aa25 | 1,664,421,263 | 1,664,460,440 | 51 | 123 | This post says nothing. Markets have declined and now you've proclaimed they were too expensive previously. Good hindsight. From here, the market may go up or it may go down. The same was true before the drop.
Using PE as an investment metric isn't terribly useful. If you think anything over PE 20 is "overpriced", you would have been sitting out the market since 2014 or so.
You also proclaimed, "if the market goes way down, that'll be a good buying opportunity." Again, it's a another generality. It doesn't mean anything. When markets go down, it's often for a *reason*, which means it's pretty useless to say ahead of time, "whenever the market goes down is a great time to buy."
We all knew valuations were high last year from a PE standpoint. That piece of information does not tell you whether valuations would *remain* high or not, and thus doesn't give a great indicator of *when* to buy or sell. As inflation has persisted and interest rates have been raised, it's a natural result for PE ratios to drop because bond returns become more attractive. Again, the narrative was that inflation was transitory and would go away. As that story changed, markets reacted accordingly.
Bond returns were so low last year that stocks were attractive even at higher PE ratios.
You say stocks are "fairly" priced now, but how could you know? If interest rates go to 10%, the current PE ratios could be horrible returns by comparison. If we enter stagflation, the current valuations could be way too high. I'm not *predicting* this, but nobody knows what will happen, and you certainly haven't made any valid case to justify when to buy or sell.
| Easy to say when you’re able to stomach the losses. Which, fortunately, I am. Frankly the lower this goes, the better it is for me. But not everyone is in that situation.
| 0 | 0.030303 | 39,177 | 2.411765 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | cad1cb6f9c0a427a87861001e6805e17 | 7877ff7b3c7548f6816d21417d3fb012 | 1,664,421,304 | 1,664,421,492 | 10 | 17 | Checks TSLA: P/E = 109
Seems fair.
/s
| I'm surprised to see this sub still use P/E to determine whether to invest or not.
| 0 | 0.25 | 188 | 1.7 | 1 |
bogleheads | xqc539 | I’m not saying stocks were priced “wrong” before, the prices people were paying were at least fair.
But certainly they were high. Now prices are much more in line with where they ought to be with an overall P/E of about 18.
They may go much lower, into oversold territory. That will still represent “fair” pricing. Good buying opportunity if it happens.
But it seems like headlines should be proclaiming stocks are better priced now, yet it’s all doomscrolling about how we’re in a bear market.
Yeah, that’s what happens when stock prices rise too much and too quickly.
CNBC should be saying, “finally, stocks aren’t stupid expensive.” | Finally stocks are priced about where they should be. I don’t see why people freaking out | cad1cb6f9c0a427a87861001e6805e17 | 64b7c95d9f86450982a32a1c6c284513 | 1,664,421,304 | 1,664,421,946 | 10 | 61 | Checks TSLA: P/E = 109
Seems fair.
/s
| Tin foil hat time. During COVID, the stock market grew at an insane pace while not making sense as to why. This "recession" is a correction to the overinflated prices that happened during COVID
| 0 | 0.033333 | 642 | 6.1 | 1 |