What’s Cheap? (Don’t Answer That. It’s A Trick Question)

What's cheap in equities? Wait. Don't answer that. It's a trick! It's all expensive. I jest. But not really. It is all expensive. Or mostly all expensive. Assuming you're looking at absolute valuations. "It's all relative" has been the mantra for equity bulls for quite a while. Between that creed and "TINA" ("there is no alternative"), you can always conjure a reasonably coherent and halfway convincing case for stocks, even as they trade at higher and higher multiples. In this environment, i

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5 thoughts on “What’s Cheap? (Don’t Answer That. It’s A Trick Question)

  1. Goldman sees Brent at $75 next year and Kostin on Friday evening noted that “energy is also the only S&P 500 sector with short interest above its historical average.”
    Defines the ongoing battle between inflationists and deflationists.

  2. I think there are sone fundamental changes that will come out of the global covid pandemic, continuing automation, increased focus on carbon pollution, increasing percentage of global population with access to the internet (currently about 50%), from not seeing a pathway for “old world” Republicans to regain political control and from a continuation of a decrease in the percentage of the global population that is considered “poor” (among other significant areas) that could change how businesses operate and what type of businesses will do well in the next decade.
    At this juncture, I am spending more time understanding who the CEO’s are- a great CEO always can make a difference but I think especially now. Business as usual or adapt to the future?

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