silversand wrote:
"Grantham uses the same methodology as he did earlier in the decade to conclude that today's value stocks are way overpriced. Take that comparison of average price/book ratios for the cheapest 125 S&P stocks (in price/book) with the average for the index as a whole. Normally the clunker stocks go for 50% of the S&P's price/book; now they're at 65%. What's more, value stocks are not only expensive relative to 2001, they're more expensive than at any time over the past 40 years." (Forbes, 2007)
...and, it's
much worse situation today, in '08! You'd have to be
suicidal to purchase any so-called "value stocks" today; even if the market dropped by 50% tomorrow morning!
How many brilliant analysts evaluate the cr_p out of every S & P and high-roller public company listed every day? These are the buyers you're competing with!
Advice (and, don't take it personally):
-never ever buy individual stocks unless you have access to millions of dollars worth of analytical talent to draw upon;
-if you have to ask this forum which way they think the wind is blowing vis the current economic climate, you shouldn't be in the equity market at all. Seek out a well-known professional to work with (like Grantham).
The problem with investment firms like his, is that the minimum investment portfolio they would consider "in" is at least $10 million to $50 million. The poor guy get's to pick only among the "bottom feeders" of the financial investment world.
Good luck!
Silver-
As the turtle said while in the hospital after running into the hair on a curve in the race, I can't say for sure, things happen so fast.
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