Browsing: stock markets

Contrary to what some of its adherents imply, PE10 will not see you dive effortlessly in and out of the market like a seagull stealing chips. But it’s a useful tool nonetheless.

Analysts, journalists and private investors often talk about the market being cheap or expensive on a P/E basis. What do they mean?

Are shares cheap, you ask? “Compared to what?” is my first reply.