Great Investors Understand True Value

By |2024-04-10T14:20:02-04:00April 10th, 2024|Blog, Great Investors Series|

“I think the one bear case that I hear a lot that I want to try to debunk is just the idea that the market is too expensive.”               

– Savita Subramanian, Bank of America Equity Strategist

In last month’s article, we marveled at the amazing track record of the U.S. equity market to produce growth of dividends and investor cash flow. This month, we debunk the common argument that the stock market should be measured by valuation statistics from the past.

Great Investors Understand True Value

Last Chance to Register for April 25th!

We have been publishing our “Great Investors” article series for over 10 years now, and it has consistently been our most popular content every year. We thank our loyal readers, and we truly appreciate your comments and feedback over the years.

As you know, we have changed the format for this series from a monthly written commentary to a quarterly livestream webinar format. We will deliver a brief talk, summarizing our outlook on current events and presenting in the same style you have come to appreciate in our monthly article series. We will then have ample time for Q&A and discussion, in order to address any additional questions you may have.

Our next webinar will be held on Thursday, April 25th, and will be available via online livestream, and in person for those who can attend. For those who attend in person, our talk will be followed by a cocktail reception. We will also make a recording available for those who cannot attend at the scheduled time.

To register to attend or to request your copy of the recording, please see the registration link here.

Valuing the Equity Market

Regular readers of this article series know quite well how we feel about the financial media: It is our opinion that most of what you see on the financial news can be hazardous to your wealth. However, once in a while there is a flash of brilliance that arises out of the fray of the 24/7 media chatter.

Take, for instance, a segment that aired on the CNBC network on February 28th of this year, when a strategist from Bank of America named Savita Subramanian said the following:

“I think the one bear case that I hear a lot that I want to try to debunk is just the idea that the market is too expensive. Folks will take today’s S&P and compare it to 10 years ago, 20 yea