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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: Lee Lichterman III who wrote (61797)6/7/2022 9:41:04 AM
From: Fiscally Conservative  Read Replies (1) | Respond to of 96464
 
Markets will move much higher ;) Lol...
Stop trying to make sense of the not sensible.

If your were buying a private business would you pay 25+ times earnings with little to no tangible hard assets ?
But this is exactly what Wall St has been selling to America for decades and the US Government sanctions it with IRA's, 401K's and alike.



To: Lee Lichterman III who wrote (61797)6/7/2022 1:01:13 PM
From: ajtj99  Respond to of 96464
 
This is where Rule of 20 can be quite helpful. If the forward S&P 500 P/E is 18, the Rule of 20 P/E is 26.

If you got one of those bear market bottoms at a 10 P/E, you'd be at the lower range of the historic lows for Rule of 20 P/E. The Dec. 2018 SPX low was around 18.5 on Rule of 20.