S&P500 undervalued

[Guest 50centdollars]

Good article. Never heard of Francois Rochon but I think he is right.

 

http://www.montrealgazette.com/business/Fran%C3%A7ois+Rochon+banks+look+undervalued+based+earnings/9123864/story.html

 

[blainehodder]

I hate to sound like a macro investor... but the forward P/E argument isn't great.  Hussman has demonstrated that simple forward P/Es for the market are not very predicative of returns...not to mention the "normal" historical forward P/E is closer to 12 (including the dot-com bubble). It is important to note the shift in use from trailing to forward P/Es.

 

http://www.hussmanfunds.com/wmc/wmc070820.htm

 

I agree on his assessment of TSLA and the banks though!

 

 

[Guest wellmont]

I would say it's totally expected that in a bull market going on 5 years now you would get articles justifying the valuation.

[Yours Truly]

Francois Rochon is a fantastic Canadian fund manager, I would recommend reading his annual reports.  His track record has been good and has delivered returns of around 15% cagr within the past 20 years.