Greenspan: US stocks still very cheap despite 2012 gains

Former Federal Reserve Chairman Alan Greenspan has labelled US equities as ‘very cheap', despite the Dow Jones closing at a four year high last night.

Speaking at the Bloomberg Washington Summit, Greenspan quashed concerns the market is trading towards the top of its range, and said it could climb much higher. "Stocks are very cheap and are trading on very low price-earnings ratios," said Greenspan. "There is no place for earnings to go except into stock prices." His comments come as US shares hit multi-year highs. The Dow Jones ended trading yesterday at 13,279, its highest level since December 2007, and just 6.5% below its record high of 14,198, achieved in October 2007. Meanwhile, the S&P 500 is 10.8% away from its all-tim...