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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 671.930.0%Nov 14 4:00 PM EST

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To: Johnny Canuck who wrote (36470)3/17/2002 12:31:43 PM
From: Return to Sender  Read Replies (1) of 68046
 
Here is a chart on the PE of the S&P 500 that goes to 9/01 when the PE was approximately 30.

lowrisk.com

According to Stockselector.com the S&P 500 PE is now at 30.6 with an expected growth in earnings of just over 20%. The high expected growth rate may be one reason the traditionally high PE is currently being sustained.

stockselector.com

Obviously if we do not see the growth in earnings that are expected then the high PE for the S&P 500 can only be expected to fall as component members reach lower prices leading to a lower price for the S&P 500 itself.

RtS
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