$Alibaba (BABA.US)$ In 1980 the PE on the S&P got down to 7 ...
$Alibaba(BABA.US$ In 1980 the PE on the S&P got down to 7 when the market crashed. The PE of Alibaba is now about 16.
Food for thought. Maybe value is not as much protection as we perhaps think.
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Teddy Willson : how about 1932?
James Browny Teddy Willson: Absolutely. What is cheap tend to get cheaper. Value doesn't mean the downside is limited - on the contrary, market can stay insane longer than we can stay solvent.
Stitch-fu James Browny: If one has time and holding power, value is an easy way to invest in that you can buy when value is there and hold because eventually, the expectation is that the majority of value stocks should eventually "mean revert" and that's when you make a profit when buy low. However, many stocks have exceptions.
Z9Gwqc14JU Stitch-fu: BABA should not be an exception, but no guarantees in life and in markets!