http://www.hussmanfunds.com/wmc/wmc140428.htm
Price to Sales VS. Price to Earnings
PE can be inflated because now there is assumption that cyclically high profit margin will be permanent.
Market Capitalization to GDP is approaching historical high and from experience,
subsequent market returns will be negative.
For buy-and-hold investors, 7-10 years of investment horizon is not enough. Probably 50 years of horizon should be applied to justify.
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