Barton Biggs of Traxis Partners says this is an opportunity to buy stocks. He is still very positive and ultimately says the market should continue to rally. Biggs is applying the rule of 20 which implies the PE ratio of the market should equal short term rates – 20. At $90 in earnings ($100 in 2011) and the Fed on infinite hold I’ll just let the reader do the math on this one….All-time highs in the S&P in the coming years? Barton implies such….
Source: Bloomberg TV
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.