Jack Bogle Slams Wall Street’s “Unrealistic” Earnings Guesses, Says Market Valuations “Rather High”

Jon Alternative Media, Blogosphere, Corporate, Market Commentary

88-year-old investing icon John “Jack” Bogle, founder of the Vanguard Group, says that the market seems to be “fully valued,” and suggests investors adjust their asset allocation.
In an interview with The Street, Bogle said:
“The valuations of stocks are, by my standards, rather high,” adding that “my standards, however, are high.”
When considering stock valuations, Bogle’s method differs from Wall Street’s. For his price-to-earnings multiple, Bogle uses the past 12 months of reported earnings by corporations, GAAP earnings, which include “all of the bad stuff,” to get a multiple of about 25 or 26 times earnings.
“Wall Street will have none of that,” said Bogle. “They look ahead to the earnings for the next 12 months and we don’t really know what they are so it’s a little gamble.”

This post was published at Zero Hedge on Oct 10, 2017.