While valuation metrics point to a very highly valued stock market, you can’t look at those metrics in a vacuum. You have to look at alternative investment opportunities including the level of interest rates. Just this week we heard from Warren Buffet and Leon Cooperman with their take on valuation.<\/p>\n
Warren Buffet said <\/span>(<\/span>http:\/\/www.cnbc.com\/id\/102644439<\/span><\/span><\/a>), \u201cthe market, based on normal interest rates, is on the high side of valuation, not dangerously high but on the high side of valuation. On the other hand, if these interest rates were to continue for ten years, stocks would be extremely cheap now.\u201d<\/span><\/p>\n Leon Cooperman (<\/span>http:\/\/video.cnbc.com\/gallery\/?video=3000376412&play=1<\/span><\/span><\/a>) said \u201cI think the market is in a zone of fair to full valuation\u2026the stock market is at about 16-1\/2 times earnings and it seems about right.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" While valuation metrics point to a very highly valued stock market, you can’t look at those metrics in a vacuum. You have to look at alternative investment opportunities including the level of interest rates. Just this week we heard from … Continue reading