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.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (22429)	1/10/1999 10:34:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 50167

IBES Indicator Flashing A Warning... wheatfirst.com ""Uh Oh! Here we go again. Let's look at the number. The IBES 12-month forward earnings are now $51.20. With a S & P 500 price of 1269 yesterday, that produces a P/E ratio of 24.80. At the same time the 10-year Treasury note yield has moved up to 4.77%. In other words stocks have become more expensive, while bonds have become less expensive. When you do the calculations that means that as of yesterday's close the IBES valuation model was showing yesterday afternoon that the S & P 500 is now 18.30% over-valued. So here we are sweaty palms, tossing and turning, and hating ourselves that the asset allocation model is almost certainly going to shift Monday Morning to a much more defensive stance."" Jim