Jack Hough: Price to Normalized Earnings Not So Bueno

One of the key bullish arguments you’ll hear about stocks is that a PE of 14-15 isn’t so alarmingly high given where Fed Funds rates are and the earnings yield (inverse of PE ratio) versus the yield on a 10-year treasury. And this is true, expect margins are likely not sustainable at today’s levels over the course of a full cycle.

Paul Vigna had one of my fave investing columnists on his show today – Jack Hough looks at a more realistic multiple for stocks assuming profit margins mean revert lower at some point:

Source:

WSJ

What's been said:

Discussions found on the web
  1. ups tracking commented on Sep 23

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  2. Vape Juice commented on Sep 25

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  3. bitcoin loophole reviews commented on Sep 28

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  4. Mossberg guns in stock commented on Oct 14

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  5. online dating commented on Oct 14

    … [Trackback]

    […] There you will find 73985 more Information on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  6. https://textme.cam/men/anal commented on Nov 08

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  7. Digital transformation consultants commented on Nov 27

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  8. 토토사이트 commented on Dec 18

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  9. functional testing commented on Dec 20

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  10. td banking login commented on Dec 20

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  11. montre replique commented on Jan 17

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]

  12. wig commented on Jan 19

    … [Trackback]

    […] Here you can find 37607 more Information to that Topic: thereformedbroker.com/2013/02/05/jack-hough-price-to-normalized-earnings-not-so-bueno/ […]