Great, I am going to be on the lookout for the highest P/E stocks I can buy to reduce risk on my portfolio.Not sure about “no P/E”. But yes in a world where markets price risk, a high P/E implies a safer investment with an associated lower expected return. Sort of antiintuitive when we see the big LG stocks on a tear, but to expect that spectacular performance to persist implies expectation of continued P/E expansion.Does the inverse then means High P/E reflect decreased risk and no P/E means no riskLow P/E ratios reflect increased risk and thus increased expected return.
Dave
Dave
Sounds like a great new strategy
Statistics: Posted by Elysium — Thu May 02, 2024 8:08 am — Replies 41 — Views 6218