Saw a talking torso on TV the other day discussing the disconnect between stock prices and the underlying fundamentals - the message being that the market is overvalued in relation to the earnings, revenue, growth, etc..., of the underlying companies. I guess if you boil it down he was saying the market PE is too high... I dunno - I don't care. I own STMP which has always had exactly the opposite problem. For whatever reason STMP has always had a target on it's back, and a PE between 10 and 19 even over the last few years when the EPS has been growing at a rate about 2X the PE.
So, what happens when the disconnect goes the other way and a stock and it's price gets held down for an extended period of time (uh - like a decade maybe...)?
I dunno - but I think we're gonna find out - what do you think shorty?
Buy AND HOLD - gaps must be filed - even the ones between shorty's ears.