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WW, I understand your POV. History is all we have. Whether it's technical analysis or fundamental analysis. Both look at historical data. One looks at historical price movements and the other at historical financial data. That is 50% of the equation. The other 50% is guessing based on what you...

Anything above the long term average (between 12-17 for most companies), I would be very careful holding it. During the dotcom bubble most internet companies were trading at anywhere between 50-200 P/E ratios. That is just asking for trouble. I definitely won't be holding anything if the P/E...

WW...Can you tell me what was the avg P/E ratio of Nikkei stocks when it hit it's peak at 40,000? No value investor would have touched it or entered at that point. Value investing is also about knowing when something is overpriced and selling/getting out of it. So most value investors would have...

There is one last thing I would add to the above. That is it is all well and good to study and find fundamentally good companies, but that is only half the job done. The other half is determining what price to pay. For eg. CBA bought at $60 in 2007 would turn out to be an average investment...

Ofcourse, WW...I have also tried to play the shorter timeframe game, with trading and CFDs. Gone through the emotional roller coster. I found my psychology not suited to shortterm profit making. Personally, I think the bigger players most of the time run over you. They take you for a ride. Just...

My apologies. You are right. I by mistake used EPS values rather then DPS as they were put right next to each other and was using my small iPhone screen to check them out. To rephrase, on $30 purchase price you would have got 10.85% gross return in 2009, and 12.38% on projected 2010 and...

WW, Everything seemed perfect for investment when the ASX was around 6800. Everyone was using margin loans right upto the maximum limit allowed. Then came the GFC. Suddenly, nobody trusted the sharemarket anymore. There were 101 reasons to believe that market will crash and burn and will have...

Fair enough Sunfish! That is why it is extremely important to know the history of the asset class you invest in. Make sure you can distinguish between what is a bargain and what is overpriced. What is quality assets and what is average/poor asset. Make sure you always have a plan B...

I would jump in now as I consider it more safer compared to jumping in when the ASX was at 6800. Just like property I am in the share market for the long term, letting dividends compound over time. Fortunately, I am still relatively young and can afford to start again if I had to. But I am...

Just make sure you don't wait too long before you jump in (If that is your intention). Remember, when everyone is making money in the stock market and everything is being painted rosy and start hearing that things are different this time around, you know that we are in a bubble. So IMHO...

Not sure how low it will go. S&P 500 has closed at 1031 below it's 200 day moving average of 1040. Most technical analysts are predicting if S&P500 stays below 1040 for another session or two we could see it drop few more % for sure until the next support is reached. From memory it was around...