So far both economic growth and job creation have remained marginally positive. Second, until recently, the bear market was mostly confined to tech stocks. Only in the past couple of weeks has the decline spilled over into Old Economy stocks and financials. Berkshire has acquired more than eight of them in the past 14 months. To the extent that there's still a problem of overvaluation, it's among the glamour stocks.
Many commentators question whether any shares are really undervalued now.
They argue that even where prices are down 60 percent or more, the stocks are not necessarily cheap. The biggest losers were typically the most overvalued at the top. Their earnings have fallen even more than analysts recognize. And no one has yet begun revising down the long-term growth rates on which PEG ratios are based. I think all those criticisms have some truth.