By Robert Stock US-mutual fund group Legg Mason sees the North American market as no more expensive ...
By Robert Stock US-mutual fund group Legg Mason sees the North American market as no more expensive than it was after the 1987 crash. Overall it perceives great opportunity for value investors in such an environment. Mary Chris Gay, portfolio manager at Legg Mason, said while the P/E ratio on the median stock in the US is 13 times, higher than it was in 1987, company profitability today is much higher. Gay said: "The bottom of 1987 P/E ratios reached 10.8 times but at the time inflation was 4% and today it is 1.9%. Productivity was only 1.2%, today productivity is 4% driven by higher eff...
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