U.S. stocks are off to their worst start to a year in more than a half-century. By some measures, they still look expensive.
Wall Street often uses the ratio of a company’s share price to its earnings as a measuring stick for whether a stock appears cheap or pricey. By that metric, the market as a whole had been unusually expensive for much of the past two years, a period when especially easy monetary policy turbocharged the popular view that low interest rates gave investors few alternatives to stocks.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:
This article basically completely ignores future growth and how that impacts P/E ratios. This is a bit misleading. Certain stocks on your list may be cheap if the E in the P/E Ratio is growing at a high rate... for example at Tesla $TSLA