SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: tejek who wrote (121786)8/4/2000 11:46:05 AM
From: Road Walker  Read Replies (2) of 1573901
 
Ted,

Thanks for posting the interesting BW article. A point of reference:

One year ago last Friday, the S&P 500 was selling at 34.62 times trailing earnings. As of last Friday, it was selling at 27.87 times earnings. In the same time frame the S&P 500 was up 6.8%.

It's pretty obvious that the market doesn't value earnings as highly today as it did a year ago. Part of that is interest rates (10 year T's below 5% a year ago; 6% now), but I also think the market is more skeptical of future earnings growth.

At any rate, it will be interesting to see if earnings continue to grow at double digit rates. And if they do, will the equity valuations start to reflect the same growth? Or will the market continue to discount earnings growth until we get back to a traditional market valuation, say, 20 times trailing earnings?

Just thinking out loud as there doesn't seem to be much news today.

John
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News