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Your Editor On Video: High PE Does Not Mean Expensive

FNArena Talks | Apr 02 2014

By Rudi Filapek-Vandyck, Editor FNArena

Investors visiting the website of the stock exchange, asx.com.au, are at risk of seeing my picture on top of their browser screen, as the revolving frame highlights a new feature that has been added to the ASX Investment Videos section.

It has not been since my infamous "alien" dividends presentation of 2011 that I have received an invitation for another contribution to this section of investor education on the ASX website.

This time around I thought it was apt, and timely, to explain as to why Price-Earnings (PE) ratios can be deceiving when looked at without the correct context. I also explain why a certain category of stocks deserves the label "All-Weather Performers" and why most of these stocks trade on high PE ratios today.

As I have also argued in recent writings, these seemingly high PE stocks are not extremely expensive and neither should they be avoided by all and sundry.

To view the video/download the slides of my presentation "Share Market Expensive? Depends How You Look At It", here's the direct link to BRRMedia:

http://www.brrmedia.com/event/frame/122593

Here's the link to YouTube:

https://www.youtube.com/watch?v=wF8XYPOn4IQ&index=2&list=PLC5042C649CE7FFB3

Enjoy.

Paying subscribers have access to my eBooklet "Make Risk Your Friend. Finding All-Weather Performers" and any follow ups I publish via FNArena on irregular basis.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

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