Stocks are up around the world Thursday, a day after the biggest gains on Wall Street in four years in the wake of “soothing words” from New York Fed President William Dudley that the case for an interest rate increase next month “seems less compelling” than it was a few weeks ago.
During more than a week of market sell-offs, investors have been “exhorted” to use declines to pick up bargains — and with a 7.7 percent drop on the S&P 500 since August 17, stocks certainly have become less expensive, says Reuters.
To determine how cheap they are, investment pros look at yields, earnings and other factors.
By several of those metrics, the bottom line is this, Reuters says: U.S. stocks aren’t wildly expensive, but they aren’t the “screaming bargains” that might pull value-minded investors back into the market.
Meanwhile, if you’ve got stock losses, a tax break may ease your pain, says The Wall Street Journal.