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· Premium Member
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I beg to disagree on a number of points. Yes, S&P 500 p/e is about average historically. However, stocks valuations don't exist in a vacuum. They should be compared to prevailing interest rates. 10-year bonds are yielding 3.5% today. That's a p/e of 28. So, stock valuations are much better than bonds today.

I suppose Sprott is somewhat self-servingly making a case for investing in commodities. But here's my question: if the US economy is in the early stages of a depression, where is the demand for all the "real things" going to come from -- base metals, precious metals and agricultural commodities. Before someone says China, let me point out that the Chinese miracle is built on US consumers buying cheap Chinese manufactured goods, not local demand.
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