Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

British Shares Overvalued? Do Me a Favour.

By Malcolm Stacey

27 August 2014 08:02

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Hello Share Pickers: The bears among us outnumber the bulls. Everyone, it seems, expects shares to fall in value. One of the growling grizzlies' most pressing arguments is that American shares are over-valued. Well, so what? Don't buy them. And sell any that you have.

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Comments

wildrides

27 August 2014, 09:53

Nor do I Malcolm ……I am completely with you on that .
There is tons of value out there if one pokes about a bit . Its the usual thing with these market commentators ……….they never look far enough back on the trend graph to twig the real picture and even then they all stick together for fear of being ridiculed . Its just fashionable to be a bear just now . But like you say the dollar has lost power and has a rival for world currency power being developed . The days of the American index being religiously following by the FTSE all share is being diminished . I import tuning bits for cars and even after paying the vat and import duty its cheaper than paying euro prices . That tells me the dollar is real cheap .
Malcolm Stacey

27 August 2014, 10:57

Thanks, Riders. I know we are right. We should not look for a bear market until the Footsie goes well above its old record – about 7,700 is probably the high point.
ADVFNPrep

27 August 2014, 11:09

Agree as well. Especially if historic FTSE values are corrected for inflation, it will clearly show FTSE is not close to previous highs.

This is, of course, in addition to other indicators mentioned in your article such as P/E of the FTSE.
Malcolm Stacey

27 August 2014, 13:36

Thanks, Preppers. I’d forgotten about the inflation factor. It makes present valuations even cheaper.