With Trump softening his stance on tariffs, stocks have been recovering. But they are for the most part still substantially below all-time highs achieved in February.
In any market downturn, attention naturally shifts in the direction of bargain hunting. With share prices in many cases much lower than they used to be, it is only rational to suspect that many stocks are now more attractively priced, if not downright “cheap.”
But how do we know if a stock is actually cheap? This question cuts to some of the fundamental philosophical problems all investors face.
Stock market investors have thousands of options. How do you differentiate the good deals from the bad ones?
Understanding value
Cheapness is a relative concept. To determine whether or not any asset is cheap, whether we are talking about a share of stock, or a car, or a house, we have to know what it is worth in the first place…
To read this full article, start your subscription now to the 76report. Use promo code DOLLAR and pay only $1 a month for the first two months. Cancel anytime.
Click HERE.
