I'm up about 40% from the lows, but down on a couple of weeks ago. Here's my opinions:
- Comparing 1929 to now does not make sense, because the $US dollar back then was tied to Gold. Selling your assets now means you are buying dollars. This is much more dangerous than holding good assets imo.
- To keep things simple, 2009 is a good period to buy, due to extreme levels of fear alone.
- PE's are lower than long term averaged right now, but try to look ahead to the recovery - if/when it comes. Use those earnings to calculate the current PE ratio and you'll see assets are very cheap.
- What's the PE ratio of cash??? say 5% interest - tax - 16% money printing/year. I'd say you're not earning too much. Cash is nothing but some vague liability of the govt.
