In a nutshell, here is the problem confronting the stock market:
World-famous, blue chip stocks — companies like Intel, to pick one example — certainly look cheap.
At $18 a share, Intel, the world’s leading manufacturer of microprocessors at the heart of every PC — is trading at a surprisingly conservative P/E (Price Earnings) ratio of 12.
The problem I’m having — and I suspect millions of other investors are having as well — is that it also looked cheap . . . back in 1995.
That’s when I bought it, for about $8 a share.
So, after 15-plus years riding a stomach-curdling roller coaster, adjusting for inflation . . . I’ve just about broken even.
And that’s before paying taxes on my “gain” if I ever sell.
While Intel’s senior management has been paid hundreds of millions.
So, time to double-down?
Or say “enough is enough,” cut my losses, and put the money somewhere else (but where?).