Wednesday, November 19, 2008

Starting to get excited now (but not too excited).

All my life I've heard stories about the fantastic investment opportunities surrounding the mid-to-late 1970s market when we had an enormous recession followed by fantastic bargains. I had always wished I was around to see those unbelievable buying opportunities. I'm happy to say I will get my wish, as this market will prove to be even worse (and thus an even better buying opportunity) than that one.

Target is at a p/e of 8. Apple trades for 16 times earnings. If you consider all the cash and no debt it has, it is really trading at 11 times earnings. Of course earnings will likely decline so those ratios will likely get worse (which is why I'm not buying yet) but I am getting excited at the possibilities. Six more months or so, and then I'm likely to start buying.

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