Are Stocks Cheap Now?

When the stock market falls as it has recently, it’s a good time to step back and focus on valuation. Firstly because it tells you how much further markets have to fall before valuations start to support them and secondly because it will allow you to work out when you are getting a bargain.

Price is always measured relative to the fair value of an index. So in this video, I look at multiple valuation models, so I can tell if the stock market is overvalued and I discuss which countries do and don’t look cheap right now.

This is what else PensionCraft Offers:

Tools I Use To Create My Videos
The rest of the tools I use are free opensource software:
✔️ ggplot2 package in R for my plots
✔️ RStudio to edit and run R code
✔️ OBS to record my videos and live streams
✔️ Kdenlive to edit my videos

Take A Look At Some Of My Other Videos & Playlists

Where Else You Can Find Me

DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

#stock #invest #PensionCraft

[kvikende]

Thanks for the video. I'm so glad you're not click baiting with falling graphs, red downward arrows and titles like "STOCK MARKET CRASH? DO THIS NOW!" but actually teach how to think and what it means.

[kennethish]

As a retired Stockbroker I can say with confidence that this presentation was balanced, sound and as usual just gave the facts - leaving the viewer to come to their conclusion
Very added value
Ramin-, you are a great asset to the investing community
Thanks

[dailyhacks]

Wow so you could realistically just look at the cape yeild and buy underperforming countries .

[mikegalloway]

Always love your work here.
Give me a PE/PEG any day of the week 👍🏻😃

[TheKzwai]

Is it worth considering that at current levels mega tech stocks are taking too large of the SPY?

If we removed the Meta, Amazon, Google, Microsoft, Apple, Netflix and Tesla from SPY, what is the forward P/E? Are we still massively expensive or have we reverted to the mean?

[andyf]

I'd like to see the similar CAPE charts for the NASDAQ vs the S&P, they are very different beasts..

[kekwirsching]

Thank you sir for the video and research. Oh, and tember it was Graham, not Buffet, who created Mr Market ;)

[peterminshull]

Greetings from High Wycombe.
Makes a pleasant change watching a well-researched and presented piece of analysis rather than the usual over-the-top, in-your-face, dumbed-down content that permeates YouTube.
I agree with the central plank of your presentation, stocks are not on ‘sale’ yet, well not the stocks I have on my shopping list.

[unknown-user]

I started watching your videos recently, and they are really good. Thank you and keep on the good work.

[simoncollins]

I read *Are stonks cheap now* which might reveal the source of my _financial_ education so far. When talking about fundamentals, do you mean this might not be a hedge fund controlled casino sir? Seriously though, despite looking like an economics themed sleeping aid, you actually have a great ability to explain concepts, an appealing voice, and an easy listening cadence. You might be taking sense too, I will stick around and find out!

[brsdmrc]

One of the most strait forward, holistic and simple studies about the stock market. Thanks a lot.

[TheNimbleNomad]

Great video - big fan! What was the flashing light in the end though - very curious!!

[jaemoon]

4th quarter gdp 7%. inflation 7%.
Jan. Gdp 0.1%. Inflation 7%.
Fiscal drop. Fed can't ease. Rates already at 0% and balance sheet ballooned. Most importantly, 7% inflation means no QE.

[prateeksharma]

"In a bit more detail" somehow always brings a smile to my face. You have monk like vibes Ramin :)

[neilcook]

Excellent analysis, for which I am very grateful, thank you

[Martin-qbmw]

Fantastic video! Thanks alot. Many people understand that the current market is expensive relative to history. However, many people dont understand that adjusting for rates paints a different pictures.

[Downsize]

The bar graphs showing cheapness of countries; is that cheapness based on cost of living, equities, or every possible thing together?

[VenturiLife]

Great chart, thank you for that simple explanation of valuations historically. Acting sensibly in the pandemic, by moving to cash, then later back into stocks, effectively doubled my retirement funds in under 6 months. I timed the market for once.

[andrewmarsden]

Very good. Look forward to you doing the same piece in January 2023. I think financial markets will be far more fair value.

[nkunam]

10Y Real Yield = Nominal Yield - Inflation = which is firmly in the negative territory around 3-5% depending on what inflation number you take into consideration. So Excess CAPE shows equities are cheap, as 1/CAPE - (Negative 3-5%) will result in around 8-10% (Assuming CAPE of 20).