[dalereed]

I vowed to never own stocks after the first labor contract I signed in the 1960s that had health and pension in them.

Since all those proceeds had to be invested every month stock became nothing but a speculative scheme with equity being reduced every month. When I was in college, a maximum of 7 times earnings was an investment, 10 times earnings was speculation and today most are over 15 times earnings.

[TexasGator]

“When I was in college, a maximum of 7 times earnings was an investment, 10 times earnings was speculation and today most are over 15 times earnings. “

From 1950 to 1970 the average P/E ratio was about 20, about where it is now.

[Red in Blue PA]

When I was in college, a maximum of 7 times earnings was an investment, 10 times earnings was speculation and today most are over 15 times earnings.

That's nonsense. The long-term average is around 17 times earnings, and depending on how low interest rates go, the multiple expands.

Certain stocks or sectors may have traded at 7 times earnings, but not the entire market over a period of many years. That is simply untrue.