"We’re starting to see a period where valuation is going to be the driver for future returns"
As opposed to all the other times when the tooth fairy drives future returns? reuters.com/article/us-usa…
As opposed to all the other times when the tooth fairy drives future returns? reuters.com/article/us-usa…
A P/E ratio is only a shortcut for valuation.
"The forward P/E ratio for Stoxx 600 is 15.4 beow the 19.3 forward P/E of tS&P 500"
Contra: "Expected long-term cash flows, discounted by the cost of capital—not reported earnings—determine stock prices." expectationsinvesting.com/pdf/earnings.p…
"The forward P/E ratio for Stoxx 600 is 15.4 beow the 19.3 forward P/E of tS&P 500"
Contra: "Expected long-term cash flows, discounted by the cost of capital—not reported earnings—determine stock prices." expectationsinvesting.com/pdf/earnings.p…
"Earnings offer a shortcut, freeing investors from the subjective and time-consuming need to assess long-term cash-flow prospects."
...Earnings are useful in valuing stocks only if they help forecast a company’s future cash flows." Rappaport and Mauboussin
...Earnings are useful in valuing stocks only if they help forecast a company’s future cash flows." Rappaport and Mauboussin
