I believe that the broad US equity market is very overvalued.But I don't own the broad US market.Still, you've often said that any investor in equities should reasonably expect to suffer a 50% drawdown from time to time. Just taking ownership of Berkshire at its current valuation as an example, this would suggest that BRK is likely to drop to ~40% below its book value somewhere along the line. Is that correct?Or would the 50% drawdown only be expected when valuations are higher than they are now for Berkshire? I realize that anything is possible, including instantaneous destruction of all life on the planet by an asteroid, but even the great depression didn't see a 90% drop in the total value of the stock market. Tom
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar