Best PE Ratio Stocks to Buy for Savvy Investors

YouTube [Music] good evening and welcome to the Australian stock market show tonight's show is all about getting the highest returns and to help you do that we take a look at the top p ratio stocks we intend to share our expert view on PE ratios and of course we do as we do every week our preferred stock picks we will answer your questions about your favorite stocks as we aim to help you make better more informed decisions hello I'm Janine Cox your host for tonight and joining me is Dale Gillum and we're Australia's most trusted stock market educators how are you Mr Gillum I'm really good that's good to hear I'm not allowed to talk about what I want to talk about why is that because you don't mind me talking about it your mouth is zipped while it is sort of zipped that's never stopped you before well it hasn't go cats you can talk about I did the footy on Friday and that was exciting really 86 odd thousand people out of all fantastic but I had a still had a boy pie and a beer and that's Sushi oh did you yeah yeah I like the football no no no no no no it's code like my wife texted me said what did you have for dinner I go Sushi yeah I might have a pie and a beer in my hand but it's always sushi fantastic because that way I don't get in trouble I had sushi it was pretty well she doesn't know they don't sell Sushi there seriously Janine well so if your husband ever texts you saying I'm having sushi you know what's going on yes well that's a whole different topic in all together now I have a quote for you all tonight it comes from Thomas Payne who said what we have obtained to do to too cheap I should start again we are steam too lightly it is dearness only that gives everything its value now Dale I know this will hit a bit of a nerve with some people what about you oh look I I have to agree with all that quality over quantity in my book you know it's like I've always been by quality or always be prepared to say for something you value because what's Buffett says you know price is what you pay value is what you get if you're paying nothing it's not much of a value well I was waiting for you to say that because I you're always banging on about the fact that if people don't pay for it then they they don't value I mean helpful it just belies um logic that people think they can get all this stuff for free and then still think that they're going to get a lot of value out of it because they don't actually value it they might think oh that's really great stuff that Virginia today I were talking about tonight but if they haven't paid for it they don't necessarily understand the value that it could be to them they just brush it off and so that's really what it's about but I do like the quote so well done okay fantastic all right now before we get into tonight's show if you do have a question that you're dying to ask us then all you need to do is simply text us on zero four two three nine five nine eight four six that's zero four two three nine five nine eight four six so just make sure you pick up your phone right now get texting your questions while we wait for your text it is the third Tuesday in the month and this means that we normally take a look at World Markets so let's get into the charts all right on the screen right now is the world currencies Janine it's the yearly list of them World Markets sorry is that a currency that's why I'm so confused you really did there's so much going on in world markets at the moment isn't it yeah look oh it's just very volatile isn't it and we're seeing that on this on the list there in terms of the change on the letters board that's occurred and I'm really looking forward to seeing you get into the relative rotation graph and explain what's going on there but the fleeting comments yeah I know I've set you up there but before we do let's just have a look at that leaders board and the NASDAQ 100 index is at the top so up 14.8 for the year NASDAQ comp is right behind that 11.5 percent we're seeing European markets the CAC and the Dax um we're they're up around seven or eight percent which is good to see Asian markets are in the middle of the board at the moment mostly the Shanghai comp index 4.7 but though we do have Europe the Europe 600 3 3.7 percent up for the year so far the nikai stock average up 3.26 percent now the US market up three percent what do you make of that well that's the S P 500 the Dow's down 2.72 but it was obviously what's driving the S P 500 is the tech stocks which is in the NASDAQ so those big tech stocks because out of your top 20 stocks in the U.S I think 10. you know when you've got the five of the things 25 or 23 of them depends on depends on which day it is but it's over 20 of the whole market cap of the of the S P 500 is tech stocks and they're in those big ones you know your Netflix Amazon's your Googles your alphabet you know Facebook um I can't remember all of them but there's a few extra and obviously in videos up there as well one of those big stocks so they're driving what that NASDAQ is doing what you're seeing on the screen there but when you're looking at the S P 500 up 2.92 and the Dow's down 2.72 something smelly is something's wrong a bit smelly it's like a bit of off Chicken in your fridge you go where is it and what's why is it doing this because it doesn't it doesn't make sense they normally whilst one will outperform the other one it doesn't make sense that they're like Polar Opposites of each other at this point well our markets are the all Lords and the s p ASX 200 are actually following the US and so we're down around the same level yeah so it just you know and as if these things in the tech stocks taking off although the small section of their Market taking off those tech stocks how long are they going to run for um and what is the mark what is the market wanting to do over the rest of the year so it'd be interesting to see and I know looking at all the news in the US and across Europe and all you know I think Gloom but whenever they do that it's usually just still my head engineering and I imagine what the people watching our show they're if they're getting into all this sort of stuff how confusing they were yeah because before the dawn that's the quote I was reading today no do you want me you want me to go I would like you to go into that before we then go and have a look at the world indices charts okay so I'll put my glasses on here um I just to let everybody know who's been here I've seen this before I do this all the time I'm talking well for my market rep and my uh on every single Monday I do but I do it on the top 20 top 50 top 100 stocks in the Australian Market but it's looking at where the markets are going and this sick to hear this is all based on where the S P 500 Index is or the SPX here which is the U.S market and how What markets are traveling faster or slower than the US market and you can see the xao was actually traveling faster than the S P 500 for a while but they're all turning down now at the moment so they're all likely to go down and come around here so the markets that are moving right now you want to get anything in the NASDAQ 100 also the complex it's another Market that's doing well this is where the opportunities lie if you want to if you do invest so lagging moving into the improving area you don't want to buy them in this area where they're already outperforming because the only way when you're outperforming is just not outperformed well look at the footsie I mean it's turned down significantly hasn't it we'll look at the chart of the footsie as well when we get into the charts oh absolutely and this is you know from this point of view these are areas that at the moment they're going down so they'll just go down for a little bit and then they'll come back up again but New Zealand's coming right up there and the SEC there the Shanghai Composites doing really really well but these are the two you should be looking at if you're looking for nice short-term little runs on some stocks and then you go down into the stocks within those and have a good look at it but at this point in time this is the momentum of all most of the world markets the big ones are all slow all right can we quickly get into some charts now so first of all what I'll bring up is the we'll bring up the NASDAQ Composite you can see they're on the screen that the recent us that we had off this low is around 21.8 percent to that high the consolidation we're seeing here is actually a really nice little setup for further gain so all this Doom and Gloom right now I'm not I'm not concerned about that at all I'm not either it's just I think there's a bit of um smoke and mirrors wouldn't you say oh look I think there's a lot of smoke and mirrors in the financial services sector I think we're legit so then that would mean we're at the point in the cycle where if there is anything in trouble everybody comes in and to the rescue and they they fix the problem they think well they have to because they can't the world the world runs on money basically so if your financial system goes well it gets to the point where eventually they can't fix it which is what occurs in a financial crisis but we were not there yet we had where we had that in 2007 to 2009 there's two we're not going to have that now it's we're not even in the rights place to have well there's too much money around there's too much money around at the moment all right so look that was an interesting chart to have a look at then I thought we'd have a look at the footsie because that was one of the ones that was turning from that um positive down and we've seen this big pullback but it's a big pullback but still I mean it could turn around and go back up again so we've just got to keep an eye on the footsie over the next couple of weeks I mean there's a lot of news about the brexit whether it was the right thing and all those sorts of things happening there but did you think the the UK Market will be taken off now I mean it's pretty much going sideways for the last four or five years oh I know so it's really loud all right well thank you for that that is it for our thoughts on the World Cup market so just a reminder that you can participate in the show by emailing in your questions which we will answer in next week's show for our YouTube viewers if you want to see the full live show you will need to head over to talkingwealth.com And subscribe so join us there with subscriptions at just 3.54 cents a week that you just gain a wealth of knowledge as you watch hundreds of interviews with some of the best experts in money business and mindset and many other areas and I've just had some great interviews recently and really excited about those now let's get into the first email question alrighty our first email question is from yes and yes is now um hi Dale and Janine I really love this show and you guys just the stock for the show dhg I'm not in this one as I haven't back tested it but it looks to be a continuation pattern just waiting for some confirmation as always this week's bar looks really good so expecting a breakout in the next week or two Pierce love your stock market report dailers it gives me insights on how you look at the market and not let our motions get in the way as I've not been the greatest at that in the past Janine even though I never got an email from you while doing the diploma thanks for all the hard work and insights you put into the show each and every week maybe an idea for next show would be to stocks that have held up well during the sell-off thanks for a great show full of great info regards yes that's a good idea isn't it that's a really great idea and in fact when I read your email well yes I thought straight away let's do that next week yeah yes it's really good I mean I was helping him I was mentoring him a little bit in the last parts of his diploma course so it was really good he's very they really came along really really well I was really proud of him so and obviously he watches my market report every Monday on on talking wealth which I just pull off so is he going on to do it more study I haven't asked him that maybe you could maybe you could bring him up he'll get to email each other if you do continue on and Advance your studies further so look forward to throwing at a fishing hook isn't it well I just had this great get together with the advanced Traders earlier in the month so that the online Forum that we run was just a lot of fun and now we're talking to each other he's even more exciting I didn't talk to each other before no it was more like they sent messages through the chat and then and now I can actually hear now they use their microphones you let them talk to you exactly okay what can we get on with answering the ass's question now oh yes okay look really great looking um consolidation that we're seeing is not in it and it's pulled back so strongly look at this one uh it's quite now if we bring this right down here we can see a 60 decline which is in the right sort of area we'd expect that generally stocks will start slowing down sometimes they continue to fall to a around 75 percent but often they'll turn around so we're seeing this consolidation this could be the start of the next rise couldn't it yeah it's possible it is possible one thing that worries me though is is obviously this low is there in December remember the market was moving up like October November December so we'd actually came down through in December so it's not doing exactly what the market did this looks a lot better but is this more just a resistance level or will it fall away again or will it rise I I'm going to err on your side go bullish on this one look I look I think he's right I think he's he's looking out the right way I do encourage him to do his back testing which he said he's got to do before he does look at it but it's not ready yet it is what he's saying because it's still consolidating but what if it takes out this low obviously we're thinking that you know just avoid it for a while well I would be yeah absolutely back to the drawing and I know when he's done his back testing he showed me his back testing his trading plans he's done some really really good work so to me this is the the beauty of what we see with people when we start to Mentor them we see them coming from I won't say places of confusion but not knowing and all of a sudden it was just like we just keep turning light bulbs on and they just we start seeing their work and they start growing from that because it gives them much more confidence to know what they're doing is working because as we work with them they're seeing more and they're seeing more and seeing more it's like it's like you know getting on a boat and going getting out into the water and you're going okay well there's a horizon but when you get to the Horizon it's not there it's moved further again and you keep seeing more and more and more and I think he's done an amazing journey it was going to be funny but that's sort of mine you can't have funny all the time because it gets boring all right never gets boring with you here can we move on now okay let's do that enough yes I just wanted to say one more thing I did think that little consolidation is put like one of the things that we talk about in the stock market is how things are not random correct so in in looking at this chart here we can see there it's very much not a case of random because if the if it moves up from here out of that we've got this beautiful little pennant pattern there consolidation so it'll be interesting to see whether it actually meets some of the rules that we teach in the course for that upside I think he's spotting a good one at the moment but again just do your back testing and uh yes and and you know really have a good look at it because I'm confident you'll do a good job of it anyway now if you do have questions like yes does you can always email us remember info wealthwithin.com we're happy to answer your questions but now we've got a text and this one is from Jack who's asking about WDS he says hi guys WDS has fallen what are your thoughts for the long term regards Jack so let's have a look at WDS so this is Westfield all right jack now long term I think it's good that he's raised long term but then should someone be in looking long term at a stock like this look I think this sort of a stock I mean you can see how bearish it's been for such a long time and look I think this is not a long term Buy and Hold type stock because of this big pool back here so yeah I mean Woodside is really it is a trading stock it's it's one of those stocks that will always be a trading stock it won't be a long-term Buy and Hold stock you know you really do need to make sure you've got good rules around it good strategies around it get into it while it's running and then get out of it that's really what you've got to do because it is has some massive massive run so if you look at this sort of run through here that's a massive run right up to there look at that 155 between roughly 77. um November you've got glasses on us 0.91 Zachary okay but it does it also can fall out of bed a little bit I mean you know looking at looking at the recent four you can see here you know little just about 21 22 percent fall since November last year down into this low here it doesn't look super fantastic to me at the moment I think it's possibly got a little bit more to go but it's a great stock if you have good trading rules on a good strategies and I know we talked about that on our podcast which we released on YouTube yeah we've done a few on strategies lately haven't we yeah we've done a couple because we sort of we wanted to come out the area from multiple different angles and so yesterday we released a YouTube video of the podcast so we talked a bit about three key areas for developing your trading strategies in a trading plan the podcast is out today of that so we do an audio of that and obviously the video goes up on YouTube so if you haven't seen those on YouTube we've got a there's one we did last week is for people um who have been trading for all of it hit and miss and maybe not sure what's going on with their trading and how to fix it that was I think last week that went out or the week before I can't remember but they're really great videos for people and an audio obviously as well because they go up on our podcasting but come check them out because they really will help you understand how what the steps you need to do to create a great trading strategy and great trading plans and get more success in your life but now we need to move on I think okay yes please okay so unless you've got more to say I've always got more to say but I think you know someone's going to be yelling at you I better punch you and say shut up okay now now I could not take that out somebody will yell at me but now it's time to get him our topic tonight Janine which is all about buying stocks with the highest potential return and here we're going to take a different approach than we normally do we're going to take a look at PE ratios we also get into the question as to whether it is better to buy stocks with low p e ratios we'll also share a simple way to use PE ratios in a stock selection process so that you can gain better results well that's all exciting isn't it I know you're jumping out of yours can I so yeah absolutely jumping out of your skin I think we're gonna we've got some awesome stuff to cover with PE ratios and it's something we don't normally cover is it I know it's um it's look it's more the fundamentals so how about we just jump into this topic and give everyone some background on PE ratios now firstly fundamentals like p e ratios can be great as part of a simple stock selection process for helping you to narrow down a watch list of stocks to buy well they do do that don't they I mean that's part of the processes and then we talk about fundamental and Technical processes to narrow down we have a fundamental top-down analysis we're going to teach people for screening stocks we also have a technical one that we do but then once they do that we can marry all that together and that's what we talk about through our courses and everything else but I do you know to me I find what a lot of people do is they get overwhelmed with way too many stocks that they're trying to analyze and look at whereas what we're teaching them is to narrow all that Focus down and by using things like P erasures and other things to do it better okay now before we go too far for the beginners a PE ratio simply means price earnings ratio and is the current price of a stock divided by the earnings now it's widely written that PE ratios are used to determine whether a stock could be cheap or expensive so the theory suggests the higher the PE the more expensive it is now Dale what we often see is that this creates a lot of confusion for investors seriously does because what's a high p e ratio exactly ratio yeah exactly and you know is it I mean one of the things I found interesting is that over time you actually have to monitor otherwise you've got no idea what that is exactly it is and you get people that go oh that's a high PE ratio and I say compared to what and they go well you know I've read it in this book and it was the book for Australia or us and generally they're trying to compare USP ratios to Australian p e ratios and you can't do that yeah and so that's where it causes a lot lot of confusion so but what is over and underway that's really yeah that's really what it's about yeah and you can use a PE ratio to compare a stock to the broader Market the sector average or individual stocks within the sector I love doing that because it really helps you get that like we talked about on our podcast the other day it was like you know you've got to work out where you are and where you're going so what is cheap what is expensive compared to what so yeah but you've got to compare the health I mean how do you compare mining stocks to a healthcare stock yeah that's right like they're completely polls different but some people try to they do but it's not really possible I know let's first take a look at the PE for the broader Market to see how the Australian Market is tracking relative to historical averages okay so we're going to bring up a graphic combat all right yes please so is that the one you want no that's not the one you want there it is that's the one you want isn't it that is the one we want so look at the moment um the p e ratio is I think around 16 the average is typically around 15. that graphs probably a little bit right across here yeah you can see the average that's the average and you can see that in 2020 there's a line there so we can see the huge volatility that's happened around that time and after as a result of covert and what's gone on since then which when you look at it totally eclipses anything that's happened on that graph that we've got there and probably all the way back in history I would say 42 43 years and we've never seen this big proof like that anyway and this is what we show highlights why we keep saying that the kovid crash correction was just completely out of the box it was completely you couldn't forecast it and so to me this just really it's hard to just yeah this is not normal I mean this bit here's the 87 crash through here here's the 2007 crash through here here's where we went from 1990 to 1991 we'd sort of double and that was that was the weight after the 87 crash yeah we've had the tech wreck in here somewhere oh that was the pyramid the pyramid collapse in the early 90s wasn't it yeah it was about 92 to 94. how about 92 ish so there we yeah but this unusual very very unusual it just shows you how unusual the kovid low was but I think you know that does show people but we're roughly average pe's right now well it was interesting to see where our Market is tracking now Dale it's worth sharing a comparison of the PE ratio for a stock versus the market and the sector as we often compare how the individual stock is tracking to the sector when determining whether it may be over or undervalued well that sounds good but that sounds like a comedy good doesn't it to most people it's like but you've got to you have to do that you've got to compare the stock to the sector to the market what's average what's good for that sector or that you know like mining sector what's average for the mining sector but compare that to the to the overall market and and is it can I say talking apples with apples yes I think that's really a wise and simple way to do do it I mean you have to be comparing the same thing we do with the PE Ratio so we're going to show people a graphic on that soon uh look I think we're gonna do it now well it's up to you you're running the show what would you like to do you're the chief you're just passed in the back well how about we talk about on the screen right now we're going to talk about this is BHP no we're not going to do it now we're going to keep going yep we're going to bring it up later okay well look I thought you would never ask what's next well I am asking my next question what's next are you confusing the hell out of me at the moment so okay Dale now let's have a look at the stocks PE ratio versus the market average and sector average on the screen is the data for BHP from Macquarie so we are bringing out the graphic no wonder I was confused it's hard for me because nothing was happening for me either it was just a blank have you been drinking you've got me confused this is morning and I got this out of my Quarry broken yeah a lot of broking websites will have this stuff and get data from Morningstar so I just want to tell people that but you can subscribe to Morningstar as well but you can see here we're looking at p e ratio here and it says the company p ratio for BHP um is 8.22 the market is 14.6 the sector is 10.49 so based on this it's undervade compared to the market and the sector yes based on this and you get all different other ratios PBP ratio growth rate all sorts of different things dividend yield but we've seen that we've seen the p e ratio on the big miners has been low for quite a while yeah and yet and then there's some of the most volatile stocks on our Market at the moment so is that you know indicating that there is some concern or is it indicating a huge opportunity it's not clear the graphic have a look at this they also put what analysts are saying here so if this is undervalued why isn't this a big strong buy it's got 12 analysts saying to hold six are saying it's sell or underperform only one's got it as a buy another if I've got it as strong well that comes back to that point before that the low P doesn't necessarily mean that it's a huge opportunity to buy right correct so people would think well that's a low PE that's you know that's lower than the sector much lower than the market average so why isn't much more minimal analysts are recommending it as a buy and that's why people get confused so okay is that enough do you want to say that's great I think you've done well uh now Dale I wanted to chat about low PE ratio stocks and what is a good PE ratio let's take a look at a list of low PE stocks from market index then we'll examine a couple of stocks from the list okay only a couple is that all you want a couple look that's not my username it's really a dozen um let's take a look all right so on that's great so that's market index website yes that's the market index website so um as we know this is a really good website for just doing a little bit of research to find out some of the things that are going on at index.com and here we've got market capitalization there on the right hand side so I've just put them in order of the biggest stocks at the top first because as people know we tend to just bring up the quality verses that bringing up the the rubbish at the bottom can I say yep so you did a PE ratio search so I've so we're looking at this well actually market index help you even further because they even give information about low p e ratio stocks so see so it's a table full of this is like the ratio stocks this is better than a beer on a hot day okay okay um so you can see here that ANZ is the biggest one on the list in terms of market cap and it's PE is 9.73 now yeah I think that's interesting when we're talking about um PE ratios and Banks because historically we know that that Banks tend to be around those either low single digits or High single digits or low double digits yes so to me that's nothing out of the ordinary at the moment for a bank Woodside is surprising because that's really low for a growth type stock isn't it yep Oh yeah that's hugely low yeah which is what we saw with BHP it's like the market it's been tipped on its head completely in terms of where the PES are at at the moment so South 32 is 8.2 and that's an interesting one so there's quite a few here pilbara minerals blue scope steel spark New Zealand talk about blue scope later on actually yeah we're talking about a lot of these um Yan coal Australia and pole inside Tech pivot I mean the list goes on if we look down here we've got the the retailers down here wow six six and and eight now the thing is you've got to really look at these in context with his historical data on PE ratios so you know we talked about before how the the miners historically have been much higher p e ratios their growth type stocks and that means that the Market's more thinking that the the earnings are reliable and therefore the Stock's more likely to be stable so what you're saying is don't just go and buy the top 10 stocks with the lowest PES no that would be just the totally wrong thing to do but I would be interested I'd never just agree with what Dale and I are saying by the way because it would be really interesting to do the study and take these stocks because we hadn't been here in this month no one's been here in this market at this time right now right you're never going to get the market doing what it's doing the same way exactly today as as it will down the track so the point is if you take this data and you actually then look at this say one year two years down the track and see where everything's tracking and compare that to the Chart that's going to tell you a lot about what this means in the future and how you can use this data data in the future unfortunately you need to have that water under the bridge in time you do because we were looking at the data back in the GFC and finding a lot of interesting things in the the GFC and stocks were looking cheap and yet they weren't they weren't so this is where you have to be careful yeah and I mean the Market's been abnormal I suppose the last three years hasn't it really since the covered low so but you know your name I think we better move on all right now um that was a lot of fun actually I really enjoyed that I can see you getting excited about it and I thought I bet I should wrap you up otherwise we'll never get anywhere now you do have a strange idea about fun Janine very strange yeah thanks for that now a high PE ratio can indicate a stock is overvalued but it can also suggest that the market expects a higher rate of growth in future earnings so this is typically when a stock is being priced higher than so the market average or the sector average what stocks will at times fit into this group well we already talked about some of them like Pro stocks like your bhps your Rios you know if South 32 is one of those so they tend to be growth stocks they tend to be some of those Tech biotech type of funds you know the pharmaceutical type of stuff the small cap type companies those sorts of things that have some of those you know and another sort of group would be more of those stocks that are newer to the marketplace you know that sort of stuff as well so yeah but yeah where they've got forecasts for for growth but they've improving themselves yet but there's a lot in an elephant stamp for all of it oh look if you need one yep I definitely can put your hand out I dare you I need an elephant stamp don't hit me too hard I'm sure our viewers will appreciate hearing that information from you because PE ratios can be so confusing or confusing yes and at times way overused or should I say way over relied upon exactly so this is why we teach investors about this topic and how they can be caught out if they make a decision on the stock using the PE ratio in isolation and so looking for stocks with a low PE ratio and thinking that they must invest in them it's just not the way to think so true so true it really is because it's it's about it's just one of the things that you use to find stocks exactly anything you use to buy the stock and I think that's what you're saying yeah exactly or in some cases they look at stocks with p e ratios higher than the market average and avoid them so how about we take a look at a few stocks from a low PE ratio list as well as a couple with higher PE ratios and consider what the chart indicates well I love it when you do that Janine it's such a great research and I always get a lot from them and I'm sure our viewers get heaps from it as well I can see you excited I'm trying to say it we're going to go to the low PE ratio stock so you're going to bring up the charting software now so we can have a look at all of it so what's the first one okay this is the two two one um yep I have to stop it too don't I for now first of all ANZ right that was the first one on the list it was the biggest market cap one on our list now we have seen over time how this stock has just basically done nothing it's traded sideways we've looked at I think it was last week we looked at the banks and all the returns didn't we year on year yeah to see what they've been doing to get an appreciation in the bigger picture sense but at the moment it's not looking great given it's taken out this low but could this be the low coming in right now well it could be but I think it looks like it's going to break that recent low well it has broken that it's just all a question now of whether it's ready to turn back up or not that's the question is it's possible isn't it it is possible but it doesn't hasn't really looked good for the last 12 months has it no it's actually been struggling for the last 12 months so my question is is whether it will Blake break that low that from June last year and if it does I would if it does do that it probably wouldn't do it by much but then I think it'd be a great buy from there well we just need to see it kick back up again to get an indication of what's next aren't we so you got another one will it yes we're allowed another one so Woodside market capitalization 60 billion the PE was 7.4 this was as at yesterday's data now I'm just looking at the um the chart of Woodside because we looked at it before with that person's question now right now you could think to yourself well it looks like it's got further to fall as we said before the PE Ratio is low we know that as the price drops obviously that's going to have an impact on the p e ratios so but a stock like this could flip really quickly do you expect that it could just turn around and trade Sideways from here look I think it's going to find some support sometime soon I think it really will find some support because it really doesn't it it has fallen quite heavily as we said but there's a huge there's a huge area through here right back through to 2020 February 2022 massive big area there that could find some support but if you look at the big monthly chart here look at it it's if I go through here and I mean I guess the big picture point of view here is really with ANZ and Woodside with low peers right now and the question is should people be buying these stocks we can see the charts actually confirming no no you don't can so someone if someone was blindly looking at the PE and thought anz's a great stock it's p e ratios Low Wood side's a great stock PE ratio is low should I buy now looking at the chart it says do you if you if you go on buy a book do you just read the cover read the cover no you don't there's a whole story that's to be told so the pity ratio might just be the cover to get you it's a nice cover it attracts you to that stock it's like oh cool I'll read the back I'll read the fun I'll read the forward now I want to read the rest of the book because I want to determine whether it's a great book so it the P gives us that shiny sparkly thing they go yeah this could be good what's interesting is at certain times in the Market at certain times in the cycle the PE Ratio may it may be really easy to use the p e ratio to select stocks yep but right now it's clearly not the case it's one tool it's one tool but it's never a buy tool for me it's always just how to find stocks yep that's what it's about but we'll go into that a little bit more a little bit later but before we do Janine before we get into more stocks and share a view on them we do need to say goodbye to our YouTube viewers so if you are watching the show on YouTube you can still watch the whole 75-minute show by heading over to talkingwealth.com And subscribe to that as we mentioned before it's just 3.54 cents a week again for that you can watch this whole show and our Australian stock market show every single week which is worth the membership on their own both those shows are worth their membership on their own but membership also gives you a lot more than that there is a wealth of knowledge in hundreds of interviews from leading experts from around the world on a range of topics from investing retirement business success mindset and the list just goes on we know you still have questions also so in order to support you our YouTube video viewers or our YouTube Loyal viewers sorry please still send us in your emails for us to answer which we will do so next week so simply email info wealthwithin.com with the subject line wealth within live for those watching on talkingwolf.com you can relax and stay tuned as you will love what we have in the next part of the show we have lots more stocks to cover more questions to answer and a host of other great content so stay where you are as we will be right back after this short break [Music] now unless you've been living in a bubble you'd be aware of the Australian stock market has been falling over the past five weeks one of the most powerful emotions driving our financial behavior is fear which which causes investors to panic and make irrational decisions like we're experienced Now While most investors know that reacting to our emotions is not the best strategy unfortunately most don't know how to change their behavior that said overcoming fear is essential if you want to make rational decisions based on sound investing principles a lot of people will try and buy on Market dips you know they talk about buying the dip or when the Market's coming down and loading up their portfolio but I always ask them well how do you know it's just a dip a short-term dip rather than a long-term pullback and you never never know I could be overly bullish at the moment because I don't think our Market is that bad what we're seeing is a bit of an overreaction to what's been going on with the banking system in Europe and the big end of town using that fear to drive more selling so they could pick up a lot more stocks easily remember I always have two scenarios on our stock market what if it goes up and what if it goes down and this is what you need to look at at all times you always need to have a process as B runs people's decisions fear and greed as we know runs the stock market and if you're fearful that means you don't have a strategy that means you don't have a process or you don't trust the strategy or process you have which is pretty much the same thing [Music]

Channel: Wealth Within

Views: 2,466

Keywords: pe ratio stocks, best pe stocks, best pe stocks to buy, stocks to buy, best low pe stocks, price earnings stocks, 10 best pe ratio stocks, low pe ratio stocks 2023, pe ratio, price to earnings ratio, what is pe ratio in stocks, what is the pe ratio, wealth within, wealth within tv, wealth within live, australian stock market show, dale gillham, janine cox, pe ratio stock market, stocks to buy 2023

Id: pDHQgBSBfBo

Length: 38min 33sec (2313 seconds)

Published: Tue Mar 21 2023