Hi Camden. I have missed this thread entirely as i do not follow...

Hi Camden. I have missed this thread entirely as i do not follow SFH. Yr recent post on TWO alerted me to it. Some comments re yr exc post 25/01.

Camden: "I have to say that I have been struggling to find value in the past 6 months.
MM: Me too!! I have been buying gold exploration stks and making some exc profits... but these are speculative and not 'value' in normal sense-of-the-word. Exception is MML which has produced exc income stream for past 3 years.

Camden: "I have a real issue with the school of thought currently prevailing among equity market strategists and financial journalists that says: "historically, stock X traded at a valuation multiple of 16 times, and today it is trading at just 13 times, therefore it is about 20 to 25% undervalued."
MM: Absurd logic used by many analysts indicates poverty in their thinking.

Camden: "I am convinced that the world of financial markets has changed forever and the dramatic imbalances in major pockets of the global economy mean that the equity market should not - and will not - trade at the ritzy sort of valuation multiples that we saw in the decade leading up to the GFC."
MM: Me too!! I reckon 'fair value' (assuming firm's prospects/macro remains solid) is PE=10. Exc. value PE=8. Almost impossible to find stks even close to this. Hence, the risk v reward ratio in current mkt is biased twds the 'risk' side. Many/most stks are priced for a world assured of 'smooth stable' economic growth... when truth is... the opposite is the reality.