- Book value might be the biggest not risk, but loss of value in the current market environment.
- A full year of S&P 500 earnings evaporates every 3.5 years.
- Fortunately, there is something you can do.
Today, I’ll continue with my series on market risks. These are the main market risks I see and you can read more about them by clicking on the links provided:
- Debt is being used recklessly.
- Valuations don’t matter as growth is the key and profitability will come.
- Book values are so old fashioned.
- Stocks can only go up and corrections and bear markets don’t last long.
- If you invest in index funds, you will do well.
In this article, I’ll focus on book values which are often an omitted metric, especially late into a bull market, but are extremely important. More →