Beware Of the No. 2 Bear Market Mistake Investors Make

Back on March 24, I noted for investors to “Avoid the No. 1 Bear Market Mistake.”

Now I’m going to tell you about the No. 2 bear market mistake. More on that in a moment.

Mistake No. 1, I said: remember the market was plummeting at the time, seemingly with no end in sight … and paying attention to all the doomsayers attempting to “predict the length, severity and ultimate bottom of said bear market.”

I went on to recommend TJX Companies Inc. (NYSE: TJX), the discount retail chain, as “a stock you should buy now — rather than wait for the all-clear signal” when the price will be much higher.

Since then, the stock is up more than 30%:

TJX Has Soared Since March


As it turns out, March 24 was the ultimate bottom. Stocks have been moving higher ever since, including TJX.

So here’s bear market mistake No. 2.

Don’t stay too long at this rally party. Sell into strength — including shares of TJX, if you own them.

Many Stocks Got Real Pricey, Real Fast

Yes, the bear market is behind us. Good riddance.

But when I first wrote about TJX in March, the stock was trading at a price-to-earnings (P/E) ratio of 13. “The last time TJX traded at that P/E value or lower,” I said: “was in the waning days of the 2008 financial crisis.”

And now?

The stock — like so many others, is getting bid on higher by investors — and in result it got real pricey, real fast.

If you add up the profits that Wall Street expects TJX to report over the next four quarters, it comes to roughly $1.56 a share in earnings. Divide that number by the retailer’s stock price of $53, and you get a P/E ratio of nearly 34.

Sometimes analysts also calculate a company’s profits by looking backward over the last four quarters, where TJX earned $1.09 a share. Divide that into the current stock price and you get a P/E ratio of 48.

No matter which way you slice it, both P/E ratios are the highest valuations that this retailer’s stock has ever traded at, going all the way back to its initial public offering in 1993.

It shows you just how far, how quick, this huge market rally has come — from historically undervalued to wildly overvalued — in three months’ time.

Do yourself a favor and start taking some profits off the table.

Best of Good Buys,

Jeff L. Yastine

Editor, Total Wealth Insider

Previous Post
Next Post


buy micro dose magic mushroom online for sale overnight delivery in usa canada uk australia cheap

483768 13563hello excellent site i will definaely come back and see once again. 882337

sex games steam

sex games las vegas

gun lake casino online

tropicana online casino

vegas online casino

nj online casino borgata

betting casino online

borgata online casino

online casino like chumba

888 online casino nj

online casino sign up bonus

start casino online

online casino real money cash app

zone online casino msn

carrots on keto

keto diet grocery list

keto coffee starbucks

keto mcdonalds

online essay writing services

mba essay writing service

dating brazilian gay men

gay priest dating site

gay dating sites for iphone

best gay online dating sites

miniature guide to critical thinking

interview questions for critical thinking

critical thinking for nurses

critical thinking curriculum

4 paragraph essay

essay for high school

how to start an informative essay

narrative essay format

transitions for essay

this i believe essay

what is an essay outline

what is an essay



gay teen dating for wyoming

gay sadistic men dating cite

cvv fullz good

807161 281515 Nice post. I learn something much more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a bit something from their store. Id prefer to use some with the content on my weblog whether you dont mind. Natually Ill give you a link on your internet weblog. Thanks for sharing. 833368

gay chat with married man

teen chat rooms 13-16 gay

dating gay macho

dating gay latin men

gay chat room cam

gay chat cahurbate

international gay dating websites

palm springs ca mature gay bisexual dating

Leave a Reply

Your email address will not be published.