IB Net Payout Yields Model

Stat of the Day II: Unprecedented Low Valuations


Valuations continue to be at unprecedented low levels as this Valueline Appreciation Potential chart shows levels only matched twice in the last 40 years. This is a theme that we''ll continue to harp on over the coming weeks. As this chart shows, valuations match only the 1974 and 1982 levels. On these 2 occasions over the next 12 months, stock market returns were very positive with an average gain of 28%.
This is yet another confirmation of the cheap valuations as other methods show an even more bullish scenario for this time period. Low interest rates and high cash hordes as documented in other posts seperate this time period from even those prior low periods.

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