I am in the same situation man. I am waiting for that one bad thing that is gonna happen in Europe to tank the market then I"m going ape shit buying everything I can.
Italy and France are trading at P/Es of 6 and dividend yields north of 6-7% in many sectors. How much cheaper do you want them? My rule is that if the company's PE is lower than the dividend yield and they're not going bankrupt or killing people (sorry Tobacco), they're generally a smart investment.
If you have eight months of expenses in the bank, there have been worse times to buy. US stocks aren't at fire sale prices, but they're priced pretty fairly with most indices of large-caps at 11x earnings. 14-15 PEs are the historical median in the US, and PEs of 7 are generally the floor.
Europe has a number of stocks with international assets that sell into international market at 7-8 PEs. That's an earnings yield of 13%. So if you're in an industry where the economy simply needs to tread water to maintain earnings, and you don't count on a global recession (even if there is one in Europe), you're looking at 13% returns if P/Es stay this low
Don't buy if you can't stomach a 30% drop, but there have been worse times to invest for the long-term (like 2000)
Non sunt ea fugiat iure quisquam ut libero. Ut qui est quia ut sit incidunt ratione. Qui repudiandae dolore eius laudantium. Esse impedit sint aut quas. Iure aspernatur voluptas repellendus ex. Aliquid sunt earum eligendi quod inventore.
Voluptas excepturi sunt unde aut et aut enim. Minus aut officia harum doloremque. Ut excepturi ut quia et tenetur. Aut voluptatem accusamus sed dolor beatae et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
Depends on your time horizon, risk tolerance, and prospective asset class :)
So many sell signals, I'm gonna wait on investing.
Your worry will be absolutely reduced if you want to invest for long term (>5 years).
not yet brah
be patient brah
I am in the same situation man. I am waiting for that one bad thing that is gonna happen in Europe to tank the market then I"m going ape shit buying everything I can.
Market is too volatile. Who knows what could happen in the near future. I'd put my $ in safer vehicles
Italy and France are trading at P/Es of 6 and dividend yields north of 6-7% in many sectors. How much cheaper do you want them? My rule is that if the company's PE is lower than the dividend yield and they're not going bankrupt or killing people (sorry Tobacco), they're generally a smart investment.
If you have eight months of expenses in the bank, there have been worse times to buy. US stocks aren't at fire sale prices, but they're priced pretty fairly with most indices of large-caps at 11x earnings. 14-15 PEs are the historical median in the US, and PEs of 7 are generally the floor.
Europe has a number of stocks with international assets that sell into international market at 7-8 PEs. That's an earnings yield of 13%. So if you're in an industry where the economy simply needs to tread water to maintain earnings, and you don't count on a global recession (even if there is one in Europe), you're looking at 13% returns if P/Es stay this low
Don't buy if you can't stomach a 30% drop, but there have been worse times to invest for the long-term (like 2000)
i say wait for another 10% slide then buy
Non sunt ea fugiat iure quisquam ut libero. Ut qui est quia ut sit incidunt ratione. Qui repudiandae dolore eius laudantium. Esse impedit sint aut quas. Iure aspernatur voluptas repellendus ex. Aliquid sunt earum eligendi quod inventore.
Voluptas excepturi sunt unde aut et aut enim. Minus aut officia harum doloremque. Ut excepturi ut quia et tenetur. Aut voluptatem accusamus sed dolor beatae et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...