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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (388676)	6/14/2009 9:44:55 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 436258

Lots of PE configurations in this article...these two are a little disconcerting. -g- 1)Because corporate losses in the fourth quarter of 2008 equaled profits registered in the previous two quarters, the market’s overall P/E, based on GAAP earnings, now stands at more than 100. That’s pricey by any definition. 2)Ned Davis Research, an investment consulting firm in Venice, Fla., looked at market valuations after bear markets since 1929. The firm found that in the first three months after bear markets, the market’s P/E tends to climb by about 10 percent. And the multiple has traditionally expanded 22 percent in the first six months after a major market downturn. But since March 9, when the recent rally began, the P/E of the S.& P. 500 has jumped nearly 40 percent. nytimes.com