Comments on: Are Stocks Cheap Right Now?

By: M

Tue, 03 Feb 2015 14:16:12 +0000

I think you’re right. Inflation is a killer, so perhaps it’s better to be in a stock, a strong one like JNJ or something like that from David Fish’s lists. Even if the price gets shoved if there’s another crash, it’s unlikely that JNJ are going to fall over as a company.

By: Vivianne

Vivianne — Mon, 02 Feb 2015 21:33:41 +0000

I agree with DivHut, there is value stock out there(oil and metal). Yet there is uncertainly and instability in the world that could collapse. At least from the media, ISIS and boco haram kidnapping and such. If the USD got strong then weep see weak goal. If there is a big war break out, we will see strong USD, gold and commodity, initial drop in stock. But we don’t know when it hit the bottom, so the best strategy now, will just buy dividend stock, average up/ down. Having too much cash, the inflation will eat through it.

By: M

Mon, 02 Feb 2015 16:17:12 +0000

Hey RN, thanks for visiting. I am able to find more value in the UK market right now, but the USA is quite expensive, especially with the strong dollar at present. I think building up a cash position is sensible, if you can’t find any bargains. But there are plenty of bargains in the Eurozone right now I think.

Cheers

By: RN

RN — Mon, 02 Feb 2015 14:27:30 +0000

Interesting article! According to the Buffet indicator the market is expensive: indicator Who is to say? When interest rates remain low for 5 or 10 dividend stocks remain one of the safest places for yield. But what can you do when you feel the market is expensive? Waiting for a dip? Might be a couple of years... While nobody knows I am going to build up my cash position a bit more this year! Take care! RN

By: M

Sun, 01 Feb 2015 20:10:34 +0000

ILG, thanks for stopping by. Yes, the chart makes it so easy to understand, doesn’t it? I know it’s only one measure out of many that you coulf compare, but I think it’s a pretty decent one.

You could do worse than to look at Switzerland right now. How about Nestle?!

Cheers

By: ILG

ILG — Sun, 01 Feb 2015 20:06:28 +0000

Very interesting chart! I hadn’t seen it laid out like that before. It makes it very easy to understand. I agree with US stocks being expensive, I have had some difficult finding value in more than a few sectors (oil, materials, for example). Maybe I just need to look more at foreign companies that trade with ADRs in the US.

Take care!

By: M

Sat, 31 Jan 2015 10:26:08 +0000

Hey NMW,

Looks like we’ve got a lot in common in that stock list. I like Fresenius, BMW, Munich Re, Siemens, and BASF :). I’m looking forward to your article!

Such a shame about the tax, but as you say, it’s like getting a reduced yield. However, there is a double taxation treaty with Germany, so there is the possibility to reclaim some of the tax (sadly not all of it)

Cheers!

By: No More Waffles

No More Waffles — Sat, 31 Jan 2015 09:08:16 +0000

The withholding tax definitely is a bummer, but I just look at it as if the yield is lower. Taxes are something we can’t avoid, so no reason to worry too much about them. If you wish to invest in German stocks, you’ll take on the highest withholding tax of ‘em all if I’m not mistaken (26.75%), so be mindful of that.

Currently I’m waiting for a good opportunity to jump into Essilor, Fresenius, BMW, Sofina, Munich RE, Groupe Bruxelles Lambert, LVMH, Bayer, Siemens, BASF, Inbev, L’Oreal, Air Liquide, Ahold, Enegas, UCB, Danone, etc.

I’ll be posting an article on Euro dividend stocks pretty soon, so be on the lookout.

Have a great weekend,

PS: I was so confused by your genders for a while, but I finally got it!

By: M

Fri, 30 Jan 2015 19:26:08 +0000

Hey NMW,

Yes of course, stocks are not necessarily cheap just because they’re cheap compared to gilts. I’m looking at Euro stocks right now, since it’s just so pummelled recently! There’s just one problem, the withholding tax. Only Finland out of the European countries doesn’t tax my dividends, whereas the other countries will tax me typically 15% – in the UK it’s only 10%. I know this is nothing compared to the pathetic situation you Belgians are forced to endure, but I’d rather not pay any tax at all, if I can legally and morally avoid it!

Are you looking at any stocks in particular? I would probably invest in German stocks actually, since I know the country and some of the major companies. I’ve always been fond of BMW, they’re great cars… although that is not a reason to invest in and of iself!

Cheers

By: M

Fri, 30 Jan 2015 19:10:22 +0000

DH, thanks for popping over. I agree with you, for Canadian stocks definitely, but perhaps it’s also something to do with the CAD having gone down so much recently? Your market is looking ever more attractive. I like the old, traditional banks you’ve got there especially!

Cheers