Stansbury Research: Debunking a Myth About Stock Prices

Stansbury Research, LLC is a publisher of financial information and software based on a subscription process, as well as an investment research firm. Founded in 1999 and based in Baltimore, Maryland, the company provides information on stocks being traded around the world and major updates on international stock market conditions. Stansbury Research provides a pre-market informative description of opportunities for trade in commodities, currency, and the global stock markets. Updates are provided by the firm on copper, oil, gold, the dollar, and specified market segments. Recommendations, commentary, and strategies on economic and financial news are provided through daily and weekly publications.

One recent article featured on Stansbury debunked the myth that stocks are expensive today. In following the perspective of the article one begins to understand that a shift in value rating within the stock market has created a situation where despite stock prices rising for a long period they are still not considered expensive. In fact, when evaluating stock prices against the 25 year S & P 500 Forward Price-to-Earnings Ratio stock prices lie exactly in the middle which makes them neither exceptionally inexpensive nor overly expensive.

The most classic value measure dictate that stocks are not expensive today. A myth in the market should not deter potential investors from a purchase. Earnings are rising while prices have fallen. If we examine the situation in 2016 it can be seen that stocks are now trading at the same forward P/E ratio as they were then while the S & P rose 46% in total returns. This means that at the same forward P/E ratio a two year period saw a 46% gain (Indeed).

The founder of Stansbury Research, Frank Porter Stansbury, serves as the editor for the website and also publishes pieces of his own on a wide variety of financial matters. A few of the provocative and diverse issues that Stansbury tackles include things ranging from the bailout programs to the European financial panic and beyond.