Sensex PE

Message

Originally posted by subu76

Originally posted by om2112

     With Brent crude hitting $125 and high inflation & interest rates we should think seriously about index levels.For value investors these levels are creating nightmare and risk reward ratio is unfavorable.I think we get relief only when crude get corrected by 30-35 per.
            Time to rebalance the portfolio and convert profits in to debt.
  BUFFET comments on general market picture
         My view of the general market level is that it is priced above intrinsic value. This view relates to blue-chip securities. This view, if accurate, carries with it the possibility of a substantial decline in all stock prices, both undervalued and otherwise. In any event I think the probability is very slight that current market levels will be thought of as cheap five years from now. Even a full-scale bear market, however, should not hurt the market value of our work-outs substantially.If the general market were to return to an undervalued status our capital might be employed exclusively in general issues and perhaps some borrowed money would be used in this operation at that time. Conversely, if the market should go considerably higher our policy will be to reduce our general issues as profits present themselves and increase the work-out portfolio.All of the above is not intended to imply that market analysis is foremost in my mind. Primary attention is given at all times to the detection of substantially undervalued securities.

Hmm....

A quote made by WB in 1970s + your assesment of where the stock market is
right now 

I initially thought this is something WB said very recently and was wondering why he'd call the market overvalued

          Oh!..I forget to mention that year.Sorry for that.My intention is to highlight capital allocation strategies along with market valuations.