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>> No.7931307 [View]
File: 29 KB, 948x758, Price-Earnings_Ratios_as_a_Predictor_of_Twenty-Year_Returns_(Shiller_Data).png [View same] [iqdb] [saucenao] [google]
7931307

Thoughts on low P/E stocks versuis high P/E stocks anons?

>> No.7930402 [View]
File: 29 KB, 948x758, Price-Earnings_Ratios_as_a_Predictor_of_Twenty-Year_Returns_(Shiller_Data).png [View same] [iqdb] [saucenao] [google]
7930402

>>7930191
Hey no need for the snobbishness.

Historically markets overestimate growth stocks as you can see from the graph. Randomly selecting some low P/E and high interest cover stocks seems to be a relatively safe way to make decent gains over a few decades.

Single digit P/E is a tad low though I do agree.

>> No.1379260 [View]
File: 29 KB, 948x758, Price-Earnings_Ratios_as_a_Predictor_of_Twenty-Year_Returns_(Shiller_Data).png [View same] [iqdb] [saucenao] [google]
1379260

If the efficient market hypothesis is true, then why do low P/E stocks perform better than the market indexes in the long term?

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