Bridge, meet Buyer...
Posted on 03/12/2009 6:32:58 AM PDT by wyowolf
Last night on Fast Money, Guy Adami mentioned that "the PE is very compelling" for Hewlett Packard [HPQ 28.61 --- UNCH (0) ]. Many of the PE's for the Dow 30 are at historic lows and appear to be very compelling. As of yesterday's, close, the average PE for the 30 Dow components is under 10. Looking at other points over the decade, that average has been between 17 and 30 according to data from Thomson Reuters. When the markets begin to normalize, it is likely that stocks will move back toward their historical multiples, implying some significant gains.
My question is, how many of the Dow will be still be in business by year end?
Non Believer !!!
At least someone is talking up the economy. Unlike Zer0.
Just my opinion, past results not indicative of future returns. Your mileage may vary. Offer not valid in Alaska, Hawaii, or the lower 48 States. Always consult a doctor before starting an exercise program.
Bridge, meet Buyer...
Can I assume that this is no longer in play? LOL
http://www.freerepublic.com/focus/f-news/1269555/posts
I don’t believe it will happen but if it does, I welcome it, both me and my 401K
I don’t want that Marxist turd to get the credit though.
And why should we listen to this guy?
I hope, but do not believe we will see 9900. 8500, maybe, but not 9900....I think we are reaching a market bottom, and real estate bottom, so a move to the plus side is not far off.
In order to have a P/E ratio (That’s Price/Earnings, not Profit/Earnings as Obama has called it), there must be E’s, too. Another way to bring the P/E ratio into historical alignment is to reduce earnings, not increase prices as is hoped for in this article. What evidence is there that earnings will remain at historical levels under The Messiah?
I’d buy it, but... What about the world’s largest consumer market being under seige? Jobs have been moved overseas. Domestic businesses have been shedding jobs like my dog sheds fur. And very soon, the Obama plan for taxing the “rich” will be understood by those of us in the middle class who are going to be hammered.
9900 by year end? Maybe, but it won’t stay.
At least, that is my hope. The alternative is depressing.
You first, Mr. Adami.
HAHAHAHAHAHA investors ignore P/E’s during booms and they’ll ignore them during BUSTS too...
While you can make the argument a P/E is a good or bad deal, unless the stock pays a sizeable dividend directly attributed to its P/E there’s little argument to buy other than very very long term hold when the market is going to drop another 40-50% AT LEAST and everyone knows it.
To be fair nobody in 2004 predicted Barack Karl Marx Obama would be President.
Beck’s fake bear rally?
Ah, but you forget, dividend payments can be halted at any time... and more than a few companies have cut or suspended dividend payments lately, and there will be more doing so, regardless of their P/E ratios.
Amazing that P/E ratios of “17 to 30” are listed as benchmarks or historical standards just because that’s where they were during this phony, Fed-driven run-up. Folks, there isn’t a single one of you who would buy a business to run, a business that would be your means of support, at anywhere near a 17 to 30 Price to Earnings ratio. That would be an incredibly stupid investment. Can you imagine, “Honey, here’s what we are going to do. I’m going to buy that hot dog stand down on 1st street, it yields about $20,000 a year for us to live on and I only have to pay $600,000 to buy it. What do you think?”
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