FYI: One of the most aggravating things I’m forced to listen to from time to time is people citing widely available valuation ratios as though their very existence has some sort of meaning for the future price of a particular stock. Such and such company is selling for only 15x earnings, therefore it’s cheap and you should buy it.
This ignores the fact that any information available to the masses is already priced in and that markets, which are made up of hundreds of millions of participants, have settled on buying and selling a given security at its current price or valuation for a reason. Markets are very smart, which is not the same as saying they’re always right.
Regards,
Ted
https://thereformedbroker.com/2018/12/29/stocks-prices-are-a-proxy-for-our-beliefs-about-the-future-2/
