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To: TexasGator

“A graph without labels is worth ... zilch.”

It looks like the Price/Earnings ratio of the S&P 500.

Stocks are selling for a very high price now, compared to the earnings they produce.

The long term average is 16.


10 posted on 08/06/2018 12:55:16 PM PDT by BeauBo
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To: BeauBo
Stocks are selling for a very high price now, compared to the earnings they produce. The long term average is 16.

One way to lower the P/E ratio is to increase E (Earnings) as in a Trump recovery and business earnings skyrocket. Perhaps the market expects this already.

13 posted on 08/06/2018 1:04:57 PM PDT by 1Old Pro
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