U-Ming, thanks for reading and commenting. Yes, the current evidence is weak, as it doesn’t hold true during speculative bull markets like we have had the past several years. The original work looked at returns on a monthly basis of the time period studied. There have been subsequent studies using later time periods and stocks in other countries that generally support the conclusions. I don’t buy stocks just because they are low P/E — I look at many more factors, but it’s just a helpful illustration that, with the exception of late stage bull markets, buying cheap stocks works better than expensive stocks.