MarkMedayski

Changes in P/E Ratios During the Current Bear Market

P/E ratio have no meaning as long as it is valuation based on earnings of a public campany before majority of investors didn't dump it's shares.
When stock price falls/rises so is P/E.
If company earns 2$ per share per year at the average price of 50$ per share then P/E equals 25.
If the same company earned 2$ per share and price of the stock fell down 50% so P/E will be halved too to 12.5 but the valuation didn't got any cheaper as investors don't believe the same company will deliver in the future.And the future nobody knows,what is cheap,what is expensive?Who can tell that?
The only true is that when stock price fall,investors lose and nobody cares about the P/E ratio when your bank statement shows your money been wiped out.
Don't buy into this article,your brokerage statement is the best proof of what you are worth today.
Dump this bloody market,take your money and run before it kills you.
I promise till this December the Dow Jones will be below 9000 at most best possible scenario and P/E of your stock will get even cheaper,so you must chose to take the loss and get burned or buy more to average at lower prices.But this new money will be taken from you too,as bear knows no fear,he will eat as long as you will feed him and there will be many more victims who will show you how nice is P/E of your loser looks when you will lose 50-80% on your best in the world blueest of blue chips.
Dump the grizzly bear before it sucks your blood and soul.