Mark Schoenenberger

S&P 500 Earnings vs. Valuation Matrix

DUDE- Standard & Poors projected 2009 earnings on the S&P500 at $48.52 on October 14, 2008. (They reduced 2009 earnings estimates EVERY month since March when they guessed earnings at $81.52).... If you read your history (Shiller is a good source), you would know that the S&P will drop its P/E during a credit and banking crisis to below 10. Ergo- from your chart, and history, we can expect the S&P to go to 450 or less at its trough.