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Clearly Buffett believes stocks are cheap, and Eddy Elfenbein's numbers back him up: The P/E for...

Clearly Buffett believes stocks are cheap, and Eddy Elfenbein's numbers back him up: The P/E for the S&P 500 slid to 12.1 at the end of last week - lowest since May 1989 - and, for now at least, a mere 10.6x next year's earnings.
Comments (2)
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Not so cheap for a earning retraction cycle that will cause that "E" to get smaller.
    16 Aug 2011, 11:33 AM Reply Like
  • PeakOiler
    , contributor
    Comments (298) | Send Message
     
    In Dec. 1974 the P/E was 7, and the Dow was trading at less than book value vs about 6x today. The Dow dividends yielded > 5%, vs 2% today. So the market isn't cheap relative to 1974.
    16 Aug 2011, 11:36 AM Reply Like
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