It’s breathtaking that people are being told what a good value stocks are, and what a great time it is to get into equities. Naturally they are going to be told this, because a multi-trillion dollar industry profits from it. No one makes money from people fleeing. But the long-term P/E clearly shows that, with the exception of the year 2000 (since so many companies had NEGATIVE “earnings”) we are higher than ever.
I know it’s old-fashioned, but the dividend yield is saying the same thing. It seems hard to imagine, but stocks used to be basically like passbook savings accounts- – – a place to put your money so you could get 5% a year in gains. No more. What people “demand” in terms of yield these days has almost never been lower.
