Bargain hunters beware. Do not rush into buy just because valuations are contracting as share prices fall. While valuations as indicated by metrics like price-to-earnings and dividend yield have corrected substantially, relying on such figures alone in the current scenario may not lead you to the right decisions.
Take for instance the PE ratio. If purely using trailing PE, the denominator reflecting earnings growth of trailing 12 months may no longer be reflective of the earnings realit ..
