As always, Bill Miller and his team are optimistic and bullish. The reasons: (1) Stocks rise with earnings, S&P 500 earnings should still grow more than 10% this year in their opinion. (2) Dividends are rising faster than earnings. Dividends are back in style and we think that is good news for investors. (3) Valuations are attractive. At less than 16 times consensus 2005 earnings and boasting an earnings yield of 6.3%, we think stocks – as measured by the S&P 500 – are attractive in both absolute terms and relative to competing alternatives…
http://www.leggmason.com/funds/ourfunds/rts/Value_Trust_Combined_06-30-05_RTS.pdf
http://www.leggmason.com/funds/ourfunds/rts/Value_Trust_Combined_06-30-05_RTS.pdf
