might be but the market already has a low PE. around 10 as I understand it. A couple years ago the market PE was about 20.
I don’t think there is any upside from now through the election.
But right now people are thinking and rightly so that likely the pubbies will win come november and chop down the deficit in 2010. obama in canada last june said deficit reduction would be next year’s big chore.
Check Barrons. The S&P 500 index P/E all the stocks is closer to 18 to 20.
To others - also consider mutual funds or ETFs outside of the USA. Other countries are doing suprisingly well because their populace is not filled with robots brainwashed by TV and NFL/NCAA ball games from 6 TV networks owned by Saudis and other Muslims.
Not everyone in the world is morons who elect a muslim to destroy their country. Canada, Australia, Germany, SE Asia. Not all people are idiots.
The market is not “cheap” by historical standards, and it never got as cheap as it usually does at the bottoms of markets.
The SP500 got only about as cheap as PE 10:1 in March of 2009, and the history of markets at real bottoms is about 7:1 or so.
With so much of the market action being driven by algo’s and HFT’s, it is very difficult to make predictions of where the markets are going or could go. We’ve been trapped in a range since about April. This is the type of market that short-term traders love - up and down, up and down, just chopping sideways. But you’d better be pretty darn good at trading and knowing when to cut losses and reverse course.
And investor’s market, this is clearly not.