[Rich Toscano]

I wrote the article you refer to.

[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.

Rich

[Rich Toscano]

I wrote the article you refer to.

[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.

Rich

[Rich Toscano]

I wrote the article you refer to.

[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.

Rich

[Rich Toscano]

I wrote the article you refer to.

[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.

Rich

[Rich Toscano]

My own business partner John does mortgages…. he’s ridiculously honest and a genius to boot. [email protected]

Rich

[Rich Toscano]

My own business partner John does mortgages…. he’s ridiculously honest and a genius to boot. [email protected]

Rich

[Rich Toscano]

My own business partner John does mortgages…. he’s ridiculously honest and a genius to boot. [email protected]

Rich

[Rich Toscano]

My own business partner John does mortgages…. he’s ridiculously honest and a genius to boot. [email protected]

Rich

[Rich Toscano]

My own business partner John does mortgages…. he’s ridiculously honest and a genius to boot. [email protected]

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

I recommend you contact my colleague John Simon and ask him this question. He knows all about this stuff. (And don’t worry, he’s not the least bit salesy.) [email protected] or (619) 476-7756.

Rich

[Rich Toscano]

Hi Ash — You are right, I have to go through a kind of onerous compliance process to publicly post any thoughts on the topic of securities investing. So I usually only do that for the articles at the PCA site, which as you can see are few and far between. 🙂

However if you email me I will be happy to give you my thoughts on the book — [email protected].

Rich

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