Wednesday, March 04, 2009

OK, stocks are now cheap

After months of arguing that stocks were not yet in cheap territory, David Leonhardt at the New York Times has finally changed his mind.This week's declines have pushed the S&P 500 index's long-term price-to-earnings ratio down to about 12.3, Leonhardt writes on the Economix blog. Over the past century, that ratio has been about 16.

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