Is the stock market over-priced?
A Debate
Few doubt the economy is on a roll. What's important is the impact on the market once profits fall with the huge capex and higher interest rates.
- The markets look expensive and scary, but there has been a fundamental shift in corporate profitability, and more important, this is sustainable.
- Lots can go wrong in a 3-15 month period. PEs are already very high, the huge capex along with higher interest rates will lower profitability
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Additional Readings:
- Indian mkt better balanced than Russia, Brazil: Nomura - At Sensex of 9000, Nomura predicted that fair value was 7000, now at 13000, they think Sensex can touch 14000!!!
Additional Reports:
- Maruti Udyog - IDBI
- TVS Motors - Emkay
- Hexaware - Emkay
Off-Topic Readings:
Parting Thought:
- I'd rather have a $10 million business making 15 per cent than a $100 million business making 5 per cent. - Warren Buffett
