The New CS Board

[YellowBull]

Was he wrong when he said stocks were overpriced in 1996? He may have contributed to the greatest stock bubble ever back then, but at least he acknowledged there was a bubble and also warned of it. So I dunno, maybe now he's become senile in his old age and can't recognize it, or maybe from a PE perspective he's correct. He's not the first person that has brought this up before, from a PE perspective stocks are undervalued especially in this climate of free flowing cash. Interestingly, Jeremy Seigel has said the same thing. And you know what, he was also screaming stocks were overvalued and warning of a huge meltdown in 1999. I give more creedence to the guys that can call it both ways when they see it then permabears or permabulls that keep making the same, tired old predictions that are always wrong.

So there will be PE expansion I have no doubt. But will it be through stock appreciation or earnings decreases? Time will tell.

For your reference:

http://www.multpl.com/