Saturday, August 17th, 2019  |  10:54 PM

A Conservative Newspaper Promoting,
Life, Liberty, and the Pursuit of Happiness

Subscribe Now: Get your own copy of The US Journal

Valuation Voodoo

Written By: Tom Hankes  |  Posted: Wednesday, August 3rd, 2011

          I've been waving red flags at you for many months now about pending market downturns.  Terrified readers calling for advice are scarce; the Maytag repairman gets more calls than I do; investors are very complacent.  Stocks rose from March 2009 and continued into 2011.  Nobody's worried- yet.

          The firms and magazines which sell stocks & mutual funds try to induce investors to buy with statements such as "Stocks are cheap!", "Valuations are ridiculously low", "I've never seen a better time to buy", "10 stocks to buy now"; you get the picture.  Curiously, the message coming from Wall Street always seems to be the same in any market environment and that message is: "It's a great time to buy".  Sometimes they're right and sometimes they're not.  If that advice comes in a bull market, nobody notices; if you take the advice and run with it at the wrong time, you could be looking at a big financial haircut.  The pleading to buy becomes more shrill when the market advances and as optimism climbs.

Sign into your account to read the rest of this article. »

Share this on Twitter  |  Share this on Facebook  |  Email to a friend.  |  Contact the editor.

What are your thoughts?

Want to read more of this article?

You must be a subscriber to read entire articles.

Gain 24/7 access to all the content on this website by becoming a subscriber.
Choose your subscription plan and get full access in minutes. Subscribe now. »

If you are already a subscriber, sign in now to read more full articles.

More Business News

Subsidies Galore: Corporate Welfare

Gold Backed Currency?

Go For The GOLD!

Poor CEO Demands Raise Because He Can Only Afford $20M Vacation Home

What the Millennials Believe About the Future of Capitalism is Terrifying

Inflation is Coming

Why is Profit So Important?

End of Malls will not make Shopping any Better

Elderly - Get Out of Stocks and Mutual Funds

Thinking Outside the College Box