Edward Yardeni's P/E Chartbook:
I can't remember who provided the link, but I printed it out and feel like I'm reading the tarot here. Also, I can't relocate the exact site, but it's supposed to be somewhere here:
yardeni.com
In any event, gazing at charts like these you find yourself lulled into the "reversion to the mean" dream, that somehow if you bought the companies and sectors with p/e ratios below the appropriate index that they would revert to the mean (that is, rise, as their prices rose and earnings stayed stable, in relative terms). But of course that's not the case, necessarily, for individual sectors or stocks. The "e"(arnings) might continue to fall and take the price right down with it.
Anyhow, I wanted to thank whoever posted the Yardeni link, as I spent a confused afternoon on the deck yesterday (lowering sun, comfortable Indian summer breeze, Brazilian CD on the little boombox, Japanese genmaicha in the cup) looking at jagged lines with no text, pondering the future.
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