Are Stocks Cheap?

Posted by Peter Knapp on 11/3/08 7:15 am

It is axiomatic that stocks are not cheap if the markets are set to fall another 10 or 30 percent. They will then be a lot cheaper of course.  We are not writing here to predict the market’s movement.  But an historical look at P/E ratios provides evidence that Warren Buffet is correct:  Stocks are cheap today. 

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