Tuesday, October 21, 2014

Are Stocks Cheap? You Wish!

These beautiful charts are from GaveKal Capital. If you think equities offer value now, perhaps you just skip this post.

Deviating from the standard P/E ratio which is so often bastardised by the media and financial pundits using "forward estimated earnings", how about we look at something a bit more cold and hard, like cash flow?

Yikes, it don't look pretty to me. The World looks horrible, probably partly because of the huge weightage of North America and Europe, which both don't look rather good to me either.

But, this time is different, isn't it?

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