The Bubble is Global:
(I posted this on another thread I am part of, thought you may all find this interesting.)
Reading London Times on the beach today, love that weekend edition.
First, business sentiment is dropping fast in France.
Second, the current average PE for FTSE is 21, it dropped to its lowest point since October 1998 this week.
-Average PE for FTSE from 1965 to present is 13.5, which would equal a valuation of 3,645.
-Average dividend yield 4.52%, which would equal a valuation of 2,945.
-These were just averages, if you were to work out the lows in the 1965 to 2001 period, based on say 1973/bear market ratings, it would put you off your breakfast.
-The FTSE closed on Friday at 5403.
Another fact that cannot be ignored - and that is the bubble is a global issue.
All the best,
West |
