In Defense of Extraordinary Claims
Read the full article at: http://www.gannononinvesting.com/2006/12/in_defense_of_extraordinary_cl.html
Submitted by George on Sat, 2006-12-30 23:43.
(via www.gannononinvesting.com)
A case for why the current circumstances in U.S. stock market can be considered extraordinary. This analysis rich article looks at normalized historical P/E levels to determine how the market is behaving differently these past few years in comparison to the historical record.
"So, don't use historical
"So, don't use historical returns as a frame of reference when thinking about future returns – and do lower your expectations!" - for a defensive investor, this may be the primary driver, past performance of long, established outfits.
But, I agree. Nice work, Geoff.