Valuation Does Not Matter

There is no P/E too high for economically sensitive stocks like Harley Davidson or any specialty retailer as they all trade at ridiculous forward multiples. There is no P/E multiple too low for non economically sensitive stocks like Pfizer.

1 comment:

Onlooker said...

Indeed. Governmental intervention and meddling has distorted the entire marketplace of the economy and finance, with rare exception. All decisions are made with the govt's influence, incentives, subsidies, etc. in mind.

About the only thing that isn't these days is the trip to the grocery store. And even there the meddling is underneath it all with the endless subsidies in the "Farm" Bills, etc.

Will we ever get back to a true marketplace and a finance system mostly devoid of these distortions?

And so many of the average citizens just don't understand the damage it does. They just want the short term goodies and damn the consequences.