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The S&P 500 trades for 14.1x earnings after more than doubling since March 2009 to an...

The S&P 500 trades for 14.1x earnings after more than doubling since March 2009 to an almost four-year high, but Bloomberg calculates that valuations are lower than at all 34 peaks since 1989. “Stocks have just gotten too cheap," ING's Paul Zemsky says. After worrying about a Chinese hard landing, a U.S. double dip and a disintegrating Europe, "the worst risks have passed."
Comments (3)
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
     
    A confirmation that the top is in!

     

    Still trying to sucker in Mom and Pop Retail. It won't work.
    5 Mar 2012, 09:18 AM Reply Like
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    I think one of my dad's favorite glib lines applies here: "you can't fool me, I'm too ignorant."
    5 Mar 2012, 09:31 AM Reply Like
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    "Valuations are lower than at every 52-week peak since 1989."

     

    I would love to see a visual of this chart. What does a 52 week peak look like?

     

    Considering that the current year over year return on the S&P is more or less flat, I am guessing that this would rank low on the scale.

     

    "1989"?

     

    Is there something special about starting with that year?
    5 Mar 2012, 09:53 AM Reply Like
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