The Stingy News Weekly (10/19/01)
The Markets This Week
DOW 30: 9,204.11 -1.50% to a P/E of 29.4
TSE 300: 6,910.96 -1.71% with a negative P/E
DOW earnings plunged this week and pushed the average P/E from 24 to almost 30. A grim level that bodes ill for investors with over 86% of DOW stocks trading at P/E ratios of more than 15.
The Value View
Dow at a P/E of 20: 6,261 (-32.0%) Poor Value
Dow at a P/E of 15: 4,696 (-49.0%) Fair Value
Dow at a P/E of 10: 3,131 (-66.0%) Good Value
Mutual fund wipeout!
Trend following explains why most investors don't succeed. If you've just flipped from growth to value investing then you might want to consider giving up on stocks altogether. Opting instead for an all bond portfolio may be a better psychological fit.
The price of stocks is still high
Overvalued or ready for another bubble? This Financial Times article points to pricey stocks and negative real returns.
It's dull, but value investing prevails
Scott Burns notes that value investing has outpaced growth investing by achieving higher returns with less risk.
Value investing guide
The Globe has just posted its third annual value guide which contains all sorts of useful data for stingy investors.
Fruit could be latest on Buffett's table
Warren maybe sniffing around the carcass of the Fruit of the Loom but is the company a good deal?
The coming of the Australian mortgage
A new, and more flexible, mortgage arrangement that should be good for disciplined homeowners.
The trivia questions this week are:
The answers for last week's trivia questions are:
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