Silicon Investor (SI) -- The First Internet Community

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 : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: 10K a day who wrote (145698)	9/11/2008 9:20:38 AM
From: Think4Yourself	Read Replies (4) \| Respond to of 306849

Well the threads I monitor are totally dead this morning. That has to mean something but I'm not quite sure what. Thought this thread would be busy as today is setting up to be a big payday for most of us. Perhaps people have been spooked out of the markets by the recent rallying? Financials start reporting next week. If LEH is any indicator it's going to be very ugly. Bottom fishers today are likely to get clubbed next week.

To: 10K a day who wrote (145698)	9/11/2008 8:38:49 PM
From: carranza2	Respond to of 306849

The bottom will be in when P/E ratios are in single digits. The NASDAQ presently sports a 20ish ratio, nowhere near the traditional bottom. comstockfunds.com The S&P Index? Ditto. We've got a long ways to go before the bottom is in, IMO: U.S. Stocks at 25.8 Times Profit Means Rally May End bloomberg.com "... Sept. 2 (Bloomberg) -- The best already may be over for the U.S. stock market this year. The Standard & Poor's 500 Index, which had the worst first half since 2002, added 0.2 percent this quarter, the only gain among the world's 10 biggest markets in dollar terms. Shares in the benchmark index for American equity climbed to an average 25.8 times reported profits, the highest valuation in five years. The last time that happened, the S&P 500 fell 38 percent. Money managers at Federated Investors Inc., Russell Investments and Morgan Asset Management, which oversee a combined $600 billion, said the gains won't last because corporate profits will fail to meet analysts' estimates. Wall Street forecasters, who were too optimistic about earnings for the past four quarters, predict income at America's biggest companies will grow by a record 62 percent in the final three months of 2008, according to data compiled by S&P. ``The market is pricing in the expectation of a good quarter, but we just don't see it,'' said Philip Orlando, who helps manage $350 billion as chief equity market strategist at Federated in New York. ``The fundamentals are going to be poor, earnings are going to be bad, and there are going to be more huge writedowns. We think stocks probably need to work 5 to 10 percent lower over the next month or two.''..." "... A combination of rising prices and falling earnings caused S&P 500 valuations to surge more than 20 percent this quarter, the biggest increase of any major market, making them the most expensive since November 2003. The index's price-earnings ratio rose above 25 three times in the last five decades, data compiled by Bloomberg show. The last was in 2001, during the bear market that followed the bursting of the dot-com bubble. The increase in valuations preceded a plunge that helped erase about half the market value of U.S. companies...."