Notice the acronym of the company behind this comment (for entertainment only)
YES WE CAN! trust BIG to tell us what to do with our money!
From www.thedailybell.com
Stocks Are Cheaper Than They've Been in Two Decades ... U.S. stocks are trading at their cheapest levels since at least 1990, according to such commonly used valuations as price-to-earnings and price-to-book ratios as well as dividend yield, Bespoke Investment Group says. This realization will lift the S&P 500 Index by 11 percent to 1,400 this year or maybe more, according to the research firm's 2012 outlook report. "The S&P 500 is currently trading below its historical average P/E and P/B ratios, and these ratios are also at their lowest levels in the careers of a large percentage of money managers," wrote strategists Paul Hickey and Justin Waters. – Fast Money/CNBC
Dominant Social Theme: Now is a golden buying opportunity!
Free-Market Analysis: OK, stocks are cheaper than they've been in 20 years. But cheaper than what?
This is actually a kind of power elite dominant social theme, in our view. We used to believe in the myth of the ever-abundant stock market but not anymore. Nonetheless, equity drummers keep pounding away. Stocks are just like any other widget. Sometimes they're expensive according to historical indicators and sometimes they're cheap. When they're cheap you buy. When they're expensive you ... hold.
In the wonderful world of brokerage, the wisest customers never sell. In about five years from now – if the current system survives, and we doubt it will – there'll be a virtual flood of articles about the few brave souls who managed to hold onto their equity positions for the past 15 years without flinching.
