Staying fully invested in expensive markets is the most dangerous thing to do with your money.
Since NSE started, every time when Nifty’s Price/Earnings ratio has gone above 22, the average
returns of Nifty became negative over the next three years.
Nifty PE 3 year Returns
<14 - 152%
14-16 - 112%
16-18 - 79%
18-20 - 51%
20-22 - 21%
22-24 - 15%
24-26 - 32%
26-28 - 36%
28-30 - 40%
Current PE Ration - 22.18
You can see current P/E multiple of Nifty at NSE’s website
http://www.nseindia.com/content/indices/ind_pepbyield.htm.
Experts, share your thoughts.
Since NSE started, every time when Nifty’s Price/Earnings ratio has gone above 22, the average
returns of Nifty became negative over the next three years.
Nifty PE 3 year Returns
<14 - 152%
14-16 - 112%
16-18 - 79%
18-20 - 51%
20-22 - 21%
22-24 - 15%
24-26 - 32%
26-28 - 36%
28-30 - 40%
Current PE Ration - 22.18
You can see current P/E multiple of Nifty at NSE’s website
http://www.nseindia.com/content/indices/ind_pepbyield.htm.
Experts, share your thoughts.