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Stock Market Ratios

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Done a bit of research into the HSBC index range and come up with the following info on the main indexes (attached).

So from what I can see, the USA and Pacific markets are overvalued but not excessively so.

Europe and Japan are still cheap.

Anyone got any further ratios in relation to the markets.


Ahhh how the fuk do you attach an excel file???

Here's the info -

Price/Prospective earnings, Price/Book, Price/Sales, Price/Cash Flow, Dividend Yield

Europe: 10.99, 1.32, 0.74, 3.52, 3.96

Japan: 14.33, 1.09, 0.52, 4.07, 2.70

UK (All Share): 11.56, 1.76, 0.90, 5.98, 3.54

USA: 14.28, 2.10, 1.28, 5.68, 2.31

Pacific: 13.09, 1.66, 1.10, 5.49, 3.17

Obviously the lowest ratio is best except for the last one, the dividend yield.

Edited by ringledman

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IMPO the DOW and NASDAQ are vastly over-priced. Probably somewhere around 155 to 20% but some analysts think as much as a third.

Cisco reported last week that it things are not good and its share price fell as a result. But Cisco is a bell-weather stock which has been surprisingly good these past 10 years at showing where the markets are going to go IMPO. The markets laughed off Cisco as being a mature fecked up stock - which it may or may not be - but it has a really good grasp on who is spending and not spending.

Problem is all the funny money that the Bernanke is pushing to the giant squid and the Morgan boy to pump the stocks. This might turn out to be the massive pump and dump in history so it could easily continue for another year, could continue as long as QE exists or the rug could be pulled out today and the markets fall by 30%.

You need to look at the volumes, who is buying and why they are buying. Seems to me that a massive smoke and mirrors is going on to lure in Joe Doe and then Goldman and JP Morgan will short, dump and make a killing leaving the Public carrying the can.

Or I could be wrong and the reality is buy the dip stupid!


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the problem with extrapolating relative historical comparisons from these is that you assume the e bit of p/e is a constant.it's not.

That's why I like using Shiller's cyclically adjusted P/E based on the last 10 years' earnings. On that basis the S&P 500 has a P/E well north of 20. I'd love to see the CAPE for other markets. There was a poster here who had the data for the UK and Australia but I only remember that the UK seemed cheap and Oz ridiculously expensive.

Without it dividend yield is a good guide. At least it tells you how much of the profits the company executives aren't stealing, I mean re-investing.

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  • 312 Brexit, House prices and Summer 2020

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