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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 688.98+0.5%Jan 22 4:00 PM EST

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To: Sun Tzu who wrote (6714)2/19/1999 6:32:00 PM
From: donald sew  Read Replies (1) of 99985
 
Sun,

Welcome. I believe that historically the average PE for the S&P is in the teens, and I am aware that the P/E has gotten below 10. Lets say that the P/E gets back to the 15-20 range. With the current P/E near 30 that would mean a 33%-50% haircut.

How soon, who knows - it could be years, but I would make a wager that we will see that haircut, before we see 15,000.

Seeya
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