A Mexican Agriculture Small Cap With a Reliable Dividend Policy

Stocks are expensive right now. Let me re-phrase that: Large-cap stocks are expensive right now. According to John Hussman, head of the Hussman Investment Trust, the S&P 500 currently sells for about 24 times earnings based on 10-year average earnings. In his latest weekly letter, Hussman explains how he uses a cyclically adjusted measure of PE that incorporates inflation to reach his conclusion that the S&P 500 is overvalued. According to his research, the only time that the broad market sold for 24 times earnings was in 1929, 2000, and 2008. I’ll let you draw your own conclusions about entering the broad stock market at such a valuation. My point is: If we’re going to find value right now, it’s probably not going to be in large-cap stocks. So I recently found a small-cap agriculture stock that’s selling at an extremely cheap valuation of just 11 times trailing earnings.... Read more

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