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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Some thoughts on valuations froth and bubbles from IBD

Comments

  • rjb112
    Had no idea the P/E's of REITS were so high. The Vanguard REIT Index Fund has a P/E of over 36.
  • CharlesCharles
    Not sure P/E is a good valuation parameter for REITs. Might be better served to eval REIT prices based on dividend.

    Hey, remember when P/E of 10 was considered value?
  • scott
    edited April 2014
    With REITs, many look at FFO instead.

    http://www.investopedia.com/terms/f/fundsfromoperation.asp
  • Vert
    A common argument, used in the article, to show that the stock market isn't in a bubble is to compare its current valuations with the highest valuations ever reached. If this isn't the greatest bubble of them all, they say, it follows that it isn't a bubble at all. Defining the term "bubble" loosely as "grossly overvalued", I'd call this rather faulty logic.
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