Now that the Dow Jones Industrial Average hit an all-time high of 20,000 on Wednesday, investors may be wondering if equities are getting too expensive to own. Indeed, the DJIA's current price-to-earnings ratio is 20.6, up from 15.7 a year ago, and it's trading at about 16.3 times forward earnings. But take a closer look at the market and how Trump's pro-growth policies could impact future earnings, and stocks don't look nearly as expensive as one might think.
Charles Lemonides, founder of ValueWorks, a New York-based investment management firm, has built his business on buying undervalued stocks, but he's not worried. In fact, he's encouraged by the Dow's breakthrough, especially after the lackluster year we've had. "It's about time we resumed a market advance," he says.