ockham

Sentiment and Valuation: Little Not to Like in This Market

Smarty_Pants: You point is also well received. You are correct that the statistic used when discussing the price to peak earnings multiple is only referencing about 20 years, which has been a relatively steady bull market, and thus may not give a full representation through bull and bear markets. Just to point out though, there have been extremes in this valuation metric during this time as price-to-peak got up to 34x during dotcom and low teens in the early 1990's...

However, I should have been more clear in stating that I was referencing only data since we began publishing our newsletters, which just happened to be the beginning of the extended bullish run. I was not trying to select a period that would distort the facts. I think it is relevant that price-to-peak has fallen so far, so fast. Almost certainly more relevant than comparing the current recession to the depression of the 30's.

Anyway, thanks for your comments because after all, that is what forum's like seekingalpha are for...comparing and discussing differing view points.