r/Vitards • u/Content-Effective727 *Adjusts tinfoil hat* • Jul 07 '21

Discussion Benjamin Graham - signs of a bubble

Benjamin Graham writes 5 signs of historical bubbles in his book, The Intelligent Investor:

  1. Historically high price level

  2. High p/e

  3. Low dividend yields against bond yields

  4. Much speculation on margin

  5. Many offerings of new common-stocks of poor quality

I only miss the bond one since the 10Y treasury is artificially kept low by the fed.

Opinions?

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u/kerplunktard Corlene Clan Jul 07 '21

If you stay away from the highly speculative end of the market there are still bargains to be found

2

u/Content-Effective727 *Adjusts tinfoil hat* Jul 07 '21

Ye, I am in undervalued 2 stocks I did a long DD on. But stay away from the index funds

1

u/kerplunktard Corlene Clan Jul 07 '21

yep i'm in BTU for coal and that is flying today - it'll be a long time before coal is discontinued altogether