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Is It Too Early To Worry About Inflation? - Today's Editors' Picks

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By SA Editors' Picks :

Good evening! I'm your curator, Jason Kirsch

Here are today's Editors' Picks:

Chart of the day:The bull market keeps going and going and going...

by contributor

Comment of the day, AuCoaster

Reversion to mean is sensible, if you properly calculate the mean.But, the mean is not a simple average PE in this case. It is a relative valuation. Valuation relative to interest rate driven alternatives. Of course, one must also consider other elements in the economy and world environment that would affect the risk premium over the risk-free interest rate. It is also important to determine a mean value on those interest rates, and the likely position of interest rates during the forecast period.As Warren Buffett said, when it comes to predicting stock market values, if he could only know one piece of data about the future, he would want to know the prevailing interest rates... because interest rates are the key to valuation.This is basic finance! Why do so many people fail to get this?The

Image of the day:Will Oprah run for president in 2020?

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Quote of the day:

Life is not a problem to be solved, but a reality to be experienced. - Soren Kierkegaard

Thanks for reading. Please share your 'Editor's Pick' with fellow investors by posting it in the comments.

Have a great day!

Jason

See also Industrial Metals And Mining: Digging For Opportunities on seekingalpha.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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