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Buying Shares Low?
Comments
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Historically low P/E across the market as a whole is a reasonable indicator of when prices are low.0
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Historically low P/E across the market as a whole is a reasonable indicator of when prices are low.
correct - however, there is historic or prospective P/E - you also have to consider where in the earnings cycle we are, for example if you are analysing one country, you need to look at total profits as a % of GDP - this tends to be stable over time, but with big peaks and troughs0 -
To use your football analogy, don't forget Preston and Huddersfield used to be the United/City/Chelsea/Arsenal/Liverpool of today.
Will they EVER be back to that level?
Everybody says "buy low, sell high" but a better one would be "buy high, sell higher"0 -
Just continuing on from this thread, would anyone advise buying shares in BAC..? Thanks!0
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iron_bored wrote: »but a better one would be "buy high, sell higher"
Which is what was the matra in the 90s/00s technology bubble.Just continuing on from this thread, would anyone advise buying shares in BAC..? Thanks!
Bank of America? Or did you mean BARC, i.e. Barclays?Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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Historically low P/E across the market as a whole is a reasonable indicator of when prices are low.
Yes but P/E's are often pretty arbitrary in determining value. Some companies will only be worth a P/E of around 5 while other's will be worth over 15
Faith, hope, charity, these three; but the greatest of these is charity.0 -
Ark_Welder wrote: »Which is what was the matra in the 90s/00s technology bubble.
its actually a trading strategy much older than that - check out "reminiscences of a Stock Operator" by Edwin Lefevre, written in the 1920's, and still one of the best books written about trading0 -
Yes but P/E's are often pretty arbitrary in determining value. Some companies will only be worth a P/E of around 5 while other's will be worth over 15
True, and some companies should be valued relative to assets not earnings, but for a large country the overall P/E relative to its history is more useful than not.0 -
Buy low, sell high- the holy grail.there are plenty of others who prefer "buy high, sell higher..."Buy high, sell higher is still buy low sell high.no it isn't.... I'll agree its buy lower, sell higher, but it certainly isn't buy low, sell high...buy low is about trying to second guess the market, buy high is about following the market - both can work, both can fail, but they are far from the same thing
Excellent stuff and a good laugh too. Had to bring this together.
JamesU0 -
Bank of America.. Since they are low and probably will go up at some point down the years.. what do you think?0
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