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A comment on Have the record number of investors in the stock market lost their minds?. Parent comment

Re:Have the record number of investors in the stock market l... by RivieraKid on Saturday May 16, 2020 @01:26PM (#23205368)
> Historical rate of return on stocks is about 7%. So in theory, a stock trading at a price to earnings ratio of 14 or less is good value

Why? I'm not saying it's incorrect but I've never seen such an approach to valuation.

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