Sept. 28 -- Famed investor Howard Marks shares his insights on the value of remaining calm in troubled times at the Bloomberg Markets Most Influential Summit in New York.
Forward PE is quite meaningless. The analysts tend to grossly overestimate forward earnings and this tendency gets worse at the late stages of market cycles. It's just a convenient way for them to pump up the price.
Funny thing is Assness et al ran the calculations to determine the average fwd P/E along his story. Their answer can be surprising to many. Sad thing is this 19 number for fwd P/E is being thrown around to assuage fears the market may be overvalued. And fact is that following fwd P/E numbers the market is as higly overvalued as using TTM P/E. P.S.: Assness calculations gauge fwd P/E along history to be in the mid 11s.
What does Howard Marks means, when he says "We are not driven by macros." Is "macro" a financial term that means something specific; Or is he referring to what macro means in general, i.e. big forces in the economy
Howard Marks is who you need in this Corona crisis.
6 year later from this video we have the all the "stay-all-home" stocks bubble burst in 2022
Thank you
Great interview.
15:23 - He is spot-on!!
The S&P trailing TTM PE isn't 19. It's over 24 as of 9/28/16.
True. I think the forward is around 19.
Forward PE is quite meaningless. The analysts tend to grossly overestimate forward earnings and this tendency gets worse at the late stages of market cycles. It's just a convenient way for them to pump up the price.
Funny thing is Assness et al ran the calculations to determine the average fwd P/E along his story. Their answer can be surprising to many.
Sad thing is this 19 number for fwd P/E is being thrown around to assuage fears the market may be overvalued. And fact is that following fwd P/E numbers the market is as higly overvalued as using TTM P/E.
P.S.: Assness calculations gauge fwd P/E along history to be in the mid 11s.
What does Howard Marks means, when he says "We are not driven by macros." Is "macro" a financial term that means something specific; Or is he referring to what macro means in general, i.e. big forces in the economy
Macroeconomic principles more affected by the Fed and public policy
too funny
Why? :)
I’m out! host was cringe