MarketWatch: “We’re in a new paradigm for stocks, this analyst argues. Get ready for permanently higher valuations.”By admin_45 in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek's Nick Colas:
..."A new model for assessing stocks may include higher valuations, as the old paradigm is no longer valid, according to a research note from DataTrek Research on Tuesday.
From about 1950 to 2000, according to Nicholas Colas, Co-founder of DataTrek Research, there was a fairly stable paradigm in place for stocks, no matter what media, financial analysts, and others who make their money scrutinizing every tick of the markets may have said.
What did the post-war stock market SPX, -0.03% look like, in hindsight? U.S. equity valuations averaged roughly 15 times earnings per share, stock market nadirs happened around 5 to 8 times earnings, and tops were at about 25 times"....
Read the full article here on MarketWatch!