Stocks may have risen pretty high in the past month, and the S&P 500 Index is up 7.3 percent this year, but equities have a long way to go, as prices investors are paying are below average, says Bill Stone of PNC Wealth Management.
Stocks are trading at a price-earnings ratios of 13.9 based on the past 12 months of earnings, USA Today, reports, adding the figure is well below the market's average P-E of 19.0 since 1988, citing S&P Capital IQ research.
Price-to-earnings ratios have bumped up in recent sessions but still remain below the average of 15 investors were seeing at the start of 2011.
"You can make a good case that stocks are relatively cheap," says Bill Stone of PNC Wealth Management. "There's room to the upside."
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Other investors have pointed out that stocks aren't accurately priced, including billionaire hedge fund manager David Einhorn.
"Our current strategy is to own cheap stocks of good businesses, largely in the United States," Einhorn writes in a January note to investors, CNBC reports.
"We are more net long equities than we have been in some time, as we believe that many stocks have reached a point where they are simply cheap enough to own even if some trouble awaits us."
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