13 responses

  1. moneygardener
    October 16, 2008

    Stocks with earnings and stable earnings potential are cheap. The kicker is determining how earnings will hold up. Also I believe that some stocks with earnings that are vulnerable to a recession are oversold and are long-term buys. Stocks with poor earnings potential and no dividends are not cheap and I agree that you could compare it to tech. stocks in the net bubble.

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  2. homeinboca
    October 16, 2008

    Mike,

    As with you I am a big fan of Bernstein’s book Four Pillars.. I am fully invested in Index Funds, including TSX60, MSCI Global, and S&P500 Index’s and taking a whacking! But I’m staying the course, keeping up my monthy contributions.
    I have been watching Bernstein’s site for updates and comments on this mess, but he has been silent – have you seen or hear any comments from him lately?

    Reply

  3. Canadian Capitalist
    October 16, 2008

    Why do you think stocks aren’t cheap now? The S&P 500 forward p/e is 14 even after the cut in earnings forecasts. Of course, stocks could fall even more but until they discover a bell that rings when the bottom is precisely reached, all we can do is keep investing when valuations are at least reasonable.

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  4. Dividend Growth Investor
    October 16, 2008

    Well, stocks could always get cheaper of course.. Luckily most investors do their purchases once/twice a month from paychecks, so they don’t load up on “cheap stocks” prematurely..

    I agree with the moneygardener however that most dividend aristocrats stocks are cheap. I still shave even during a recession. ( I still eat as well and shop at a retail store)

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  5. Four Pillars
    October 16, 2008

    boca – I haven’t seen anything from Bernstein in a while. You would think now would be his time to shine.

    CC – a lot of financial companies were valued based on their assets – which in some cases turned out to be worth a lot less than original assumed. The stock price is down and it isn’t on sale. Of course this doesn’t apply to all companies.

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  6. Jordan Clark
    October 16, 2008

    Hey Mike I just tried to send you a message from the “email us” form on your page but the form kept coming back so I suspect the page is broken. If you haven’t gotten my comment please contact me and I’ll send it directly.

    Cheers, Jordan

    Reply

  7. Mark
    January 1, 2009

    Interesting take on not selling. Although it doesn’t have the same impact on a stock’s price as buying, there is some correlation.

    Reply

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