MDA - Market Direction Analysis Message Board

STOCKTALK

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.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 665.67

-0.9%

Nov 17 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: donald sew who wrote (9318)	3/27/1999 9:15:00 PM
From: Les H	Read Replies (1) of 99985

Yardeni has more detailed price-earnings graphs for the S&P at his web site on Stock valuations. The valuation model on S&P price versus earnings is interesting. There is a trading channel that can be discerned from the P/E at which we're now at the upper end of the channel. The channel would range from the high teens, 17-19 to 30-32 which is where the market currently stands. I believe the Federal Reserve valuation model for the S&P (which is available at the same site) would place fair value at a P/E of 18. The following Adobe Acrobat file contains the price-earnings graphs for the S&P. yardeni.dmg.com Also, the earnings growth has been deteriorating since late '97 / early '98 as you noted in your observation of the DP chart. This tends to precede a major market downturn and an economic downturn by a couple years or more.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next