This REIT CEO Warns That Bargains Are Hard to Find Today
For those of an older age group, the term FOMO might sound like some new-fangled technology term. But it simply means "fear of missing out," which is an age-old problem in life and on Wall Street. It's particularly hard to fight FOMO when everyone seems to be in a buying mood -- which is the warning real estate investment trust (REIT) Four Corners Property Trust (NYSE: FCPT) has just given to investors, as it works to stay focused on buying at the right price instead of any price.
For investors, there are any number of valuation metrics that can be examined to see if a stock is overpriced or on sale. The quick go-to for most is the price-to-earnings ratio (P/E), which basically says how much you are paying for a company per dollar it earns. The market's current P/E ratio is around 29 times versus an average of around 16. Another rough estimate of valuation is dividend yield, noting that the S&P 500 Index's 1.3% yield is near historic lows today. Investors should probably tread with caution.
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Source Fool.com
