tag:blogger.com,1999:blog-816559531110064247.post4567027434053431735..comments2024-03-08T01:03:44.522-08:00Comments on Humble Student of the Markets: How cheap are stocks? (Two views)Cam Hui, CFAhttp://www.blogger.com/profile/09672203690656029787noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-816559531110064247.post-48196284459393727512012-12-02T10:50:50.771-08:002012-12-02T10:50:50.771-08:00It's difficult to get a company by company his...It's difficult to get a company by company history of sales for all the components of a specific stock index (including dead and merged companies) going back to the 1950's. So we use GDP instead as a quick shorthand.<br /><br />Yes, there are problems with such a measure and these valuation metrics are approximations. Nevertheless, these serve as important valuation metrics for the market as a whole.<br />Cam Hui, CFAhttps://www.blogger.com/profile/09672203690656029787noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-76551438180420563882012-11-29T13:11:01.080-08:002012-11-29T13:11:01.080-08:00If GDP is a proxy for sales why not use sales them...If GDP is a proxy for sales why not use sales themselves? About half of the S&P's sales are overseas so US GDP is incomplete.Knight-traderhttps://www.blogger.com/profile/00066661609680241623noreply@blogger.comtag:blogger.com,1999:blog-816559531110064247.post-88572914424951614432012-11-29T10:35:20.875-08:002012-11-29T10:35:20.875-08:00My question will all long term charts comparing ca...My question will all long term charts comparing capitalization / GDP: what about the fact that some large portion of earnings now come from overseas, particularly emerging markets. That should necessarily make that multiple expand above where it was in say 1980? I dont have stats on me, but lots of global mega caps like pepsi, exxon, IBM etc are getting 30-50% of revenue outside the US.Anonymousnoreply@blogger.com