joof

Pay No Attention to the 140 P/E Behind the Curtain

The trailng 4q PE leading to 140 is a red herring. The financial sector writedowns in 2008 unwound or reserved the excess profits in the financial sector from 2003-07 related to the mortgage boom/bubble. Using that number excessivley amplifies the effects of one period catch up for years of over reported profits ( or underreserved losses)

More relevant - trailng 10 year PE or forward to normaized earnings PE - assuming anyone has clue about the latter

Stock vs. Bond Valuations

you should add a colored band for "periods of terror" ie credit crunches -- when people flee to treasuries and the normal spread behavior does not apply

For example....now