Stock market valuation
Investment decision is critical, investor often confused that, at what time is best for long investment. Some ratios will guide the investor.
For those, P/E ratio, p/B ratio, and price/ sales ratio.
Market statistics would reveal the results of P/E ratio return.
Nifty pe ratio presents below the 15, avg market return of 38%. At the same time P/E ratio above 25, market was given the return only 4% to 9%.
Astute investors buy at bear market, always get the high return.
Greedy people invest when market is in peak. They get get negative return.
Buffet has said that, greed when mkt down, panic when market is in peak.https://youtu.be/ly8q835zKfo

Comments