I've heard some talk recently about the P/E of the S&P being
extremely high and at unsustainable levels. I was curious
what the board thought or if there was a useful ratio or indicator
for this. TIA
Posted by doctormike on 14th of Oct 2009 at 01:51 pm
P/E means nothing in a momentum driven market. Think about tech
bubble. Many stocks had P/E ratios of infinity with E equal to
negative. Sooner or later the fundamental will cause a sell off.
Until then...be careful. Drunk people in a party will only drink
more..., but eventually they will OD.
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S&P P/E
Posted by 1carnut on 14th of Oct 2009 at 01:35 pm
I've heard some talk recently about the P/E of the S&P being extremely high and at unsustainable levels. I was curious what the board thought or if there was a useful ratio or indicator for this. TIA
P/E means nothing in a
Posted by doctormike on 14th of Oct 2009 at 01:51 pm
P/E means nothing in a momentum driven market. Think about tech bubble. Many stocks had P/E ratios of infinity with E equal to negative. Sooner or later the fundamental will cause a sell off. Until then...be careful. Drunk people in a party will only drink more..., but eventually they will OD.