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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (9911)	9/6/2008 11:40:34 PM
From: John Pitera	Respond to of 33421

Is it operating earnings as contrasted with actual earnings, including write-offs? I was impressed to see John Bogle on Bloomberg on Thursday with a more realistic comment that the SPX forward earnings were a 15 multiple based on operating earnings, but the PE multi jumped to 23 times when the actual earnings are tallied due to the practice of having write-offs, one time charges etc. that occur EVERY SINGLE DARNED YEAR. he commented market was not highly valued at a stated operational earning perspective, but that it is still highly valued at the de facto reported earnings level. Stocks are still not an unloved asset class. After 10, 12 years of no real return in equities..... people want them, want to catch the bottom in the market, want the bottom in financials. The market place really needs to give negative reinforcement to this pervasive chasing of the assets in vogue of a decade ago. Secular Bear market have not run their course without more univeral loathing of the formerly beloved asset class. I don't believe the men and women on main street are in love with commodities by any strech of the imagination. That's why they have got more room to run now that we've chased the hot money out of them. John