David Dreman–Stocks have never been so cheap since 1982, good opportunity to buy

Joe Granville recently predicted DOW to drop by 4000pts. Today I came across contrarian investor David Dreman saying stocks have never been so cheap since 1982

So now we have one that offers a technical take and now David Dreman offers a fundamental take

People currently do not want to be in the market because they think this depression like scenario will continue
Stocks are very very cheap
Low PE, Low PTB and High Yield tend to outperform the markets
Great food, tobacco companies can go out of favor in secular bear which provides a great buying opportunity
His new matrix discussed in the book
1. Diversification important have ever been
2. Small caps will out performed and do better
3. Psychological – The more we like something the more we are willing to pay and up to 100 times earnings
Lessons from 2008 bear
1. If there is a loss don’t buy
2. Financial stocks are difficult to evaluate

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

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Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.

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