Are Stocks Cheap?

http://www.cxoadvisory.com/blog/internal/blog9-20-07/

This is the key to markets. Are stocks cheap or are they not? Hussman, Grantham, and others believe markets are very expensive on a normalized earnings basis due to record high profit margins that will revert to the mean. I strongly agree with them that margins will revert. The big question is timing. Whether we have started to revert or it is still 3 to 5 years out I do not know. That is million dollar question because whoever is right on that should have a lock on what the market will do.

That is why you focus on individual companies.