As banks decrease the interest they are paying on savings accounts, a lot of people who were conservative-minded enough to have cash in the bank are going to look for yield by buying stocks. They’ll buy good companies because they are risk-adverse by nature. But I predict they are going to overpay for them. Grossly overpaying for a company can be a bad investment, even if it is a great company.
Costco is a great company, but not a great investment at 55 times earnings.