Quote Of The Week: Are Stock Valuations Too High?

calculations complex“Stocks are at above-average valuations, but understand that they can stay that way for many, many years.

Valuation is never a simple snapshot of a few key metrics. Rather, it is a much more dynamic and complex question involving vectors that are constantly subject to change. … Merely looking at the price-to-earnings ratio alone for equities (is) grossly oversimplified.

To determine which asset class is “flashing a warning signal” — which is pricier — requires us to ask questions about what will happen in the future. These are events that we do not and cannot know.”

Barry Ritholtz, “Don’t Let A Bad Process Derail Your Investments,” Financial Advisor, February 28, 2017

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!


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