Cape Fear or Cape of Good Hope?
I regularly get asked, “Is the stock market high, Chris? Is it overpriced? Will it crash soon?” And the truth is, there is not one person in the world that truly knows. However, one point of certainty is that successful investment in global stock markets is achievable with careful long-term planning.
The process behind delivering this success is comprehensive, one element of which I will outline here.
A Better Way to Value the Stock Market
When most people ask, “Is the stock market expensive?”, the answer they usually get involves the price-to-earnings (P/E) ratio, which, in its simplest terms, measures a company’s current share price relative to its earnings per share. pide the market’s current price by its most recent earnings, and you have a rough sense of value.
