I am not an expert and they say a little knowledge is a dangerous thing, but doesn't it look like the US stock markets are set for a plunge in January? Doesn't the historical price to earning ratio alone suggest a correction?
I thought of you as I wrote this, Tom -- careful to make this one a question. But sure, while I missed the September/October target, is S&P 480 still out of the question? Is this a huge suckers' rally?
Want to review your previous prediction?
ReplyDeleteI thought of you as I wrote this, Tom -- careful to make this one a question. But sure, while I missed the September/October target, is S&P 480 still out of the question? Is this a huge suckers' rally?
ReplyDeleteThe Price to Earnings Ratio you quote is a ten year average.
ReplyDeleteLast comparable number S&P published was 138, and then stopped reporting it.
Tom can confirm.
Valuation has nothing to do with it at this point.
Thanks, anonymous. I wondered why some seeming experts are reporting the S&P's P/E as 88.
ReplyDeleteI understand enough to know that the PE can be brought back to historical norms by a growth in earnings, but that doesn't seem likely any time soon.