onzilla

Markets Are Pointing Down

i just can't beleive that people waste their time with this kind of analysis. do you know why all the brokerage houses fired their equity technical analysts? not becuase the add absolutely no value.. (the knew that when they hired them).. but because finally even the masses realized that this was nothing more than witch craft.. (in equity markets anyways).

good luck to you all

How Low Are PE Ratios? A Comment on Mark Hulbert’s Take

not really sure about your data... did you take out the $X Billion of XO losses related to the financials? You would need to unless you think that those numbers will recur on a annual basis indefinitely. Estimated P/E for next year earnings is 11... which is what you should really be looking at... and lets just say that those 'estimates' are wrong... and we are really looking at next years earnings being a 15 P/E , which gives you a earnings yield of ~7%. Compare that with long dated US treasuries. Anyway you cut it, things at these levels are cheap historially v. treasuries. Look at European equities and the valuations are even more pronounced.