Investors’ Conundrum, circa 2010

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?).
About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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