Value investor Bill Nygren: Stocks are cheap if you think economy will recover from coronavirus

. It comes during a volatile period for stocks since February highs as Wall Street responds to the economic shock from the coronavirus.

"Long-term changes then you have to think about applying a P/E multiple to those changes," he said. Investors often use price-to-earnings ratios to determine the relative value of a stock." The Detroit-based bank, which closed Tuesday up 17.6% at $14.27 per share, is trading around one-third of its book value, Nygren noted., and "they could lose those earnings if this lasts more than a quarter or two," Nygren said.

It’s like 2013 prices, the market always rebounds.

Bill dancing to hot song... Eventually Recover... Go Bill Go

Eventually could mean 2-3 years

looks like a dead cat bonce to me

Eventually...... is a long time horizon

Of course this sentence hinges on the definition of eventually

The market must keep getting new money. It has been retirement money driving up values. With layoffs occurring and emergency withdrawals about to start. No more money to drive up prices.

We haven’t seen the derivatives losses associated with the precipitous crash we experienced emerge yet. There’s really no reason for optimism.

Rotation of stocks between categories brings to mind the picture of someone rearranging deck chairs on the Titanic! We’re going down! Sell the bounce.

What price can you put on something as there is an infinite amount of dollars? Get it? bitcoin fixes this !

plenty stimulus around the glob no way this is going to fall, this time is different ;) buybuybuy

so the theory goes.. buy when cheap.

You’re a genius

Of course they are, and of course the Stock Market will survive. Things will be fine if one has money to eat and to invest and does not become a victim of the contagion!

How about recovering from the 'Swedish Strain'?

But people need cash to live on. No money to invest no matter how cheap stocks are.

Don’t need any experts now .... when markets are up, everything is up .... when markets are down, everything is down. Just need direction, blindfold and some darts!

Worldwide, 4 to 6 weeks after 'lockdown', number of new cases begins to rollover. Additional 4 weeks to aggressively treat newly discovered cases within 'lockdown' period. New number on stimulus totals 6T. Anticipated new package now estimated to be news tomorrow, possibly by 12.

Stocks are currently more expensive than black market toilet paper.

Thanks captain obvious

... provided you have enough time to wait... and had recovered from 08’ - most real people “Bill!” are struggling to pay bills ffs.

Yes it will recover but maybe in 6 months or 6 years how we will know ? We will know when can control the Coronavirus not now now buying shares is gambling because we don’t know where is the bottom yet ?

“ if”. Great insight

Wow thank u for this amazing insight, I had no idea!!

If not Unemployment, GDP and Earnings are gonna keep it depressed

Well no shit? Is the next headline gonna be the sun is hot if you stand outside in the summer?

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