Value investors tend to ignore the fact that different stocks should have different P/E ratios. They may say a stock is cheap when the P/E ratio is under 10. But if the company is failing, it deserves a single-digit P/E ratio.
The country once had a smaller ratio of private sector employees in regard to population. This was prior to the 1970s, when there were more households with a stay-at-home parent.
It is possible investors buy seasonal stocks like railroads in summer while the news looks bad so they can then sell when they report higher traffic later in the year.
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