What do you see that is truly cheap on an absolute basis? I bought a little bit of BEN a few days ago at $19.95 because I thought it looked cheap.....well it just got cheaper.
I think BUD looks cheap today with a 4% yield and at 12 times consensus earnings. It's 60% off of its high. People have been drinking beer for thousands of years -- don't think they'll be stopping soon.
Anybody see anything (quality) that looks truly cheap on an absolute basis?
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Probably too late to sell though I could be wrong. I don't think you should buy because stocks are "cheap". WAit for some news on the health front. THat will be the light at the end of the tunnel. If you buy merely because stocks are down 20+ % the light at the end of the tunnel could be a locomotive.
The opportunity cost is definitely true though, and when one considers that there is some level of inflation and also that one can get some small interest on the money (for me in FNSXX) you can definitely make the argument for hanging on to the money.
Good news: that's probably a five-year low.
Bad news: that 50 year average looks to be 15-20.
So "the market" isn't classically cheap.
Sensible grown-ups, El-Erian most recently, are anticipating a 30% drop in the market. That's good news in a way, since we're already down by the low- to mid-20s.
Bought some cabarnet sauvignon (aged in bourbon barrels, good reviews, $10) at Aldi's yesterday, which represents my big purchases this week. Other than that, I continue to doggedly add my monthly pittance to RiverPark, Grandeur Peak, Seafarer and T. Rowe Price Spectrum Income. Don't see a lot of reason to change, though I know that my allocation is underweight US stocks so I'll need to buy some more BIAWX sooner than later.
For what that's worth,
David
Looking at DJ around 22,000 at the moment compared to 29,000 earlier in year.
On my likely buy list: VDIGX and GPGCX. I might also add a little to my small stake in TDVFX. Super volatile fund, should bounce back if the market does, but sure, right now I wish I'd never bought it.
Was considering PCI or PDI but yikes, I wish I understood better what was in Dan Ivascyn's magic sauce so I could grasp the risks, but I don't, so I'll probably steer clear.
massive PANICS all over US/world
Adding vti vde slowly...maybe catching falling knives
I met a Canadian financial advisor on a train trip back in the winter of 2017. He said it was pretty easy work. Just told his customers to buy Canadian banks.
"SWS" shows CM at an even deeper discount, -48.5% below NAV. They are showing the div as just a bit lower, at 6.82%. (But see below!) "Highly volatile" over the last 3 months, but EVERYTHING has been volatile, lately....The graph shows CM to be less volatile than the industry average, though it's a bit more volatile than the GENERAL market.
...Valuation is shown at greater than -50% discount. (NYSE dollars, not Toronto.) 4 out of 6 "analyst checks" are green, 2 are red. Those two are the PEG ration and the P/B.
"Fair Value" is pegged at $122.64. Price today is $52.22.
Analyst future growth forecast: not good, so you'd be buying it for the dividend. It's not NEGATIVE, just not much growth is forecasted. "Earnings" are rated as "quality." So I guess that means earnings at CM are not made up of non-recurring items that are exceptions to the rule.
Financial health: 6 out of 6 green check-marks. Long-term assets are much bigger than liabilities. On the specific spot showing the dividend, it is shown as 8.23%. (It goes ex-dividend on 25th March.)
"Yield vs. the Market:" 8.2 right now and in three years it is forecast to be 8.4.
The dividend is judged to be "stable" and "growing." Right now, 50% of earnings are paid out to shareholders, and 49% predicted in three years.
I hope all of this is useful.