Dow Could Fall 5,000 Points and Still Not Be ‘Cheap’
Thursday, January 21, 2016 8:29
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So says a certain stock-valuation analysis
by Brett Arends
Market Watch
Hard to believe, but the Dow Jones Industrial Average DIA, +0.45% could fall by another 1,000 to 5,000 points and still not be “cheap” compared with long-term stock-valuation measures.
That’s the stark conclusion from an analysis comparing current stock prices to underlying measures such as per-share revenue, earnings and corporate net worth.
And it suggests that even if we are now overdue for a short-term bounce or rally of some kind, buying heavily into the latest sell-off isn’t the kind of one-way bet that value investors crave.
Stocks are certainly much cheaper than they were a few weeks ago.
Continue Reading at MarketWatch.com…
Source: http://financialsurvivalnetwork.com/2016/01/dow-could-fall-5000-points-and-still-not-be-cheap/?utm_source=rss&utm_medium=rss&utm_campaign=dow-could-fall-5000-points-and-still-not-be-cheap
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