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  • S&P 500: Which Earnings Are Most Relevant to Its Performance? [View article]
    Ah yes, the PE ratio of the S&P 500, an item that seems to be "Off Limits" from reporting on, unless some new "Yardstick" is used.
    I think its time to see a type of "shadowstats" on the PE of the S&P500, just as we need to view shadowstats.com to see what CPI would look like using the same Yardstick used through the 80's.

    As astounding and unbelievable it is to imagine we would ever have a PE of 100+, that is the PE on the S&P 500 today, about PE 134. Any of who have read, I'll use Sy Harding's "Riding a Bear", or any source of material that goes into Historical Averages, Highs, Lows, etc., would know the 10-15-20 PE range meanings.

    Keep in mind that the current 134 PE includes the highly fudged Q1/09 Earnings, assisted by a retroactive Accounting Rule Change, the Mark-to-Makeup numbers used. Once Q2/09 Earnings are in the PE ratio on the S&P 500 will be in the 1,900 range. So I'm sure people are working on another new Yardstick. But for those who want to use what has always been used to determine the PE with the standard Yardstick, you can simply go the official S&P Website. I'll leave the link, and a paste of the PE:

    www2.standardandpoors....
    [ same link made Tiny ]
    tinyurl.com/5g8k8z

    S&P 500 Statistics
    As of June 30, 2009

    Total Market Value ($ Billion) 8,045
    Mean Market Value ($ Million) 16,090
    Median Market Value ($ Million) 6,532
    Weighted Ave. Market Value ($ Million) 68,624
    Largest Cos. Market Value ($ Million) 341,141
    Smallest Cos. Market Value ($ Million) 643
    Median Share Price ($) 27.875
    P/E Ratio* 134.01 <<<<<&l...

    *Based on As Reported Earnings.
    ======================...
    [ they use TMT instead of TTM, Twelve Months Trailing, instead of the more commonly used Trailing Twelve Months, same thing though. I believe most who read seekingalpha will understand why the media does not mention these stats. It is truly astounding to see ]

    Estimate based on Q2/09

    www.decisionpoint.com/...

    DECISION POINT
    OVERVIEW OF MARKET FUNDAMENTALS
    Wednesday 7/1/2009

    TMT P/E Ratio (GAAP)

    2009 Q1 / PE 134.20
    Estimate Q2/09 / PE 1923.60
    Jul 18 12:52 pm |Rating: +2 0 |Link to Comment
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