Having experienced multiple market tops since my my first venture into stocks back in 1969 I feel it is important to warn newvbies in the stockmarket .
By newbies I mean investor/speculators that have been in stocks for 10 years or less.
One Mantra you keep hearing from today's analysts is how cheap stocks ar historically from a PE level .
From every other measuire they are priced for not only perfection but priced as if the average consumer was in the best shape in history .
What absolute nonsens , here are some examples of how expensive many stocks are .
In the Dow transportation index which has led this 2013 rally by its most rocket like advance in history , there a stocks like UPS selling at 18 times its book value (or break up value)
How does that comparte to last years Tech darling AAPL ?
AAPL's price to book is 3.26 but it has an opraatinmargin of 25%
UPS which after competes in a low profit margin business and has a 1.49% profit margin has a price to book of 17,25 or FIVE times as high as AAPL . How can Cramer tout UPS ?
Either he is absolutely clueless at evaluating stock or there is something fishy going on .
I left IBM t\ill last because it is even worse than UPS in some ways , since its TBV is minus $12.72 per share it is priced at $229 above its TGB , you work it out what the PB really is but is astronimcal .