寶馬說。。。

Market bottom？

 1，market valuation

 Apparently, some famous investors are reported to buy into the weak these days. But are these stocks really cheap now?

One way to answer the question is Morningstar's market valuation graph, which gives the ratio of price to fair value for the median stock in each coverage universe over time. A ratio below 1.00 indicates that the stock's price is lower than the estimate of its fair value

As you can see, the market bottomed (mid-term and long-term) @ around 0.80 during the last bear market. What is the reading now? 0.76, ALL TIME LOW since they started to collect the data !

Do you see why Buffett is buying GS and GE (GE is pretty in every sector of US economy)

2。T-Bill Yield VS SP 500 Dividend Yield

The dividend yield is one of the oldest and most respected measures of the stock market's value.

As the dividend return on stocks decreases they become less attractive or more overvalued.

 This indicator calculates the dividend rate of return relative to fixed income investments because they both compete for investors seeking a consistent nominal return

 Historically, when the ratio crosses above 2.1 it has been a noteworthy warning that the market was vulnerable to a correction.  

When this indicator has been below 1.8 the market has demonstrated a significant upward bias.

 

What is the reading now? 0.35 !! Okay, see why long-term investors are in the market now?

3。T-Bill Yields vs SP 500 Earnings Yields

 Another way to judge if stocks are undervalued is to compare SP earnings yields with T-Bill yields

 (The S&P Earnings Yield is the prior 12 months' earnings of the S&P 500 Index as a percentage of its cash price)

Current reading? 0.2, another all time low since 1999