Whither the markets?

[Southie]

Re: Whither the markets?

@Southie

Burton Malkiel author of random walk on wall street had an op ed Aug 28 wsj. CAPE ratio 25.1 long term avg 15. So abt 60 pct overvalued?

He says well interest rates low. So discount rates for future earnings low. So NPV of future earnings higher. So can support higher p to e. Then he says interest rates expected to remain low for some time.

Crock I say. Overvalued means overvalued.

Then he says 10 yr returns expected to be low from these levels.

There u go. Isn’t an investor supposed to care abt long term returns

This was Aug 29. Malkiel appears to have been incorrect. As stated, mkt has given up 3 pct since.