BEST VALUE IN 18 YEARS

Finweek English Edition - - Creating Wealth -

UN­TIL PRIOR to the cur­rent up­swing and mea­sured in terms of earn­ings yield (and also its div­i­dend yield), the banks in­dex showed the best value in 18 years. Nev­er­the­less, the cur­rent earn­ings and div­i­dend yields of 12,7% and 4,4% re­spec­tively are still in an area that’s in the past been fol­lowed by good price in­creases. Af­ter 1990 (point A on the chart), when there were sim­i­lar lev­els, the in­dex rose by about 1000%; and af­ter 2002 (point B) the in­crease was 220% be­fore the bull trends ended.

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