Posted on 08/05/2009 12:06:59 PM PDT by TTT
The WSJ article is more propaganda from the MSM. The S&P web site shows earnings estimated at $29 for 2009 and $37 for 2010. That would be a PE of 34 for 2009 and 27 based upon 2010 earnings. Using a PE of 15, the S&P 500 should be at 435 and at 555 using 2010 earnings versus the current 1000 level.
The difference is the WSJ artcile and the CNBC shrills use "core" earnings and exclude "special" losses. Funny, they don't exclude special gains during the boom times.
What the companies report to the SEC is all there earnings and that is how PE ratios are calculated throughout history.
Yes. Do I win anything?
Welcome to FR.
It’s a “market of stocks” and there are gems to be found if you do the research.
DUH... this is a dead cat bounce folks... The economy is shrinking at rates that have whiped out YEARS of growth, yet stocks are worth more? Don’t bet on it.
The DJIA is at least twice where it should be, if not more.
Nothing has changed or is going to change in the fundamentals in a good way anytime soon.
Short term, the stock prices are probably increasing too fast for this economy.
Longer term, we are going to see some combination of inflation and/or high interest rates over the next several years. In that environment, stocks probably stand a better chance a chance of keeping up with the rate of inflation than most other investments. Real-estate is usually a good investment in inflationary times, but the real-estate market has a whole lot of risk right now.
You didn’t win the Buick but you can have a few thousand shares of GM stock.
Well, let's see. Earning are down. Household income is down. Consumer spending is down. Taxes are up. Stock market is up. Emmm. Let me think? emmmm. I'll have to get back to you.
I would agree with you, but I've been slammed by the negative ETF's, and watched positive etf's go sky high (look at FAS). It's going to be a hayride over a cliff when this false market pops.
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