[quote=vkailas]The go on to say we are currently very safely in an expensive valuation so you probably should not invest considering that only rarely when in a expensive valuation do investors get good returns. [/quote]
That’s not what the article says at all… that fact that you come away with that conclusion indicates that you didn’t read it very carefully. (Further proof is found below).
[quote=vkailas]These kind of articles or common in a down market.[/quote]
If you view the articles page on the pca site, you will see that we were putting up bearish articles in early 2007 well before the market peaked. So your implicit accusation that we wait until a down market to put up such articles is incorrect.
[quote=vkailas]Trying to scare investors even more.[/quote]
We truly believe that the market is overvalued, we invest accordingly, and we try to educate people as such. The accusation that we are trying to scare people (with the implication that we don’t even believe what we are writing) is very insulting.
[quote=vkailas]The article however glances over the fact that their valuation is an average of the past 10 years of earnings. And while it’s historically rare to have good returns in markets with similar average valuations over the past 10 years, the tech bubble we experienced is also rare with astronomical valuations that made no sense and lower earnings that other past booms. Using an average of all these lower earnings over the past 10 years leads to a average expensive valuation. [/quote]
The valuation is based on the past 10 years’ earnings, not on the past 10 years’ valuations, so the above is incorrect.
