
Dow loses 1,300 points erasing nearly all advances under the Trump presidency - treycopeland
http://washingtonpost.com/business/2020/03/18/stocks-markets-today-coronavirus/
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aazaa
After all this, stocks are _still_ overvalued by historical standards:

[https://www.multpl.com/s-p-500-pe-ratio](https://www.multpl.com/s-p-500-pe-
ratio)

Perhaps surprisingly, this even ignores the inevitable hit to earnings Q1 will
bring. Factor that in, and fair value on the S&P is way, way lower from here.

Throw in the inevitable massive distortions of the economy through the Fed's
institutional panic moves, and who knows where fair value lies.

I'm not sure many people realize that there are two simultaneous and very
grave crises happening at the same time: COVID-19 and the return of the Great
Financial Crisis.

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mardifoufs
What does overvalued even means? You cannot compare historic prices in
isolation. Value is relative, so while yes ratios are higher and have been
higher the past few years, stocks were still undervalued compares to bonds,
real estate, commodities etc. It's useless to compare 1980s stock prices when
interest rates were at 13% to now. That's why you usually see the "stocks are
a bubble, too expensive" from retail investors that just cannot understand
relative value and fixate on the "good old times". It's simple, getting 13%
returns on bonds meant that stocks would always underperform in terms of yield
so they had a lower relative value. This is why no one professional investor
is waiting for a return to those level. Because they would be impossible and
non sensical.

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perl4ever
If you're going to write this story, fine, but maybe wait another day so you
don't have to write "nearly"?

