With artificially low interest rates, artificially low inflation rates I would expect to see P/E's in the traditional 12's - 17's not the 21+ range as they are now.
Posted on 02/27/2013 6:27:54 AM PST by blam
Are you kidding? The stock market is totally controlled, manipulated and propped up...One has to be an idiot to hand their money over to Wall Street.
I’m not sure I understand what you’re saying, and I’m almost positive you didn’t understand what I was saying, so let’s just let it lie.
I recommend reading lessons.
I said it was market manipulation, by the Fed.
And that I don’t have much money in the market.
It’s not at all clear to me on what point we are in disagreement, and why I therefore must be “kidding.”
And I stand behind it.
Uh, them.
;-)
Wall St. is sending a message to Uncle Ben, “yeah, that $90 billion a month you been giving us to pump up the market, you need to double that.”
It seems to me that people with lots of cash (not me) only have a few choices: invest in gold or other metals; let it rot in a money market fund with a microscopic interest rate; stuff a mattress; or buy stocks. I think the low interest rates and undesirable bond markets are inflating the price of stocks. If interest rates went up to a point where an investor could gain 6 or 7 percent a year, stocks would look less appealing and the marked would be lower.
This.
I don’t see how the stock market can crash when it is being supported with FED Reserve money. It is not like the FED Reserve is going to withdraw their money and crash it.
Hahahahahahahaaaahhahaaa!!!
If the market was at 7, 500, the P/E (zero’s famous profit earnings ) ratio would be about 8. You don’t know what the hell you’re talking about.
With artificially low interest rates, artificially low inflation rates I would expect to see P/E's in the traditional 12's - 17's not the 21+ range as they are now.
The curreent TRAILING P/E for the S&P 500 is 17, hence my comment that a market cut in half would be a P/E of 8. Among the multiple sources try www.multpl.com. And yes, I concede the E portion of the ratio is being jacked up by 0% interest rates.
Seems I am not alone when reading your comments, which seem coded or convoluted at best.
the impact of monetary policy on the economy is convoluted
That’s ok! Many do not know the market.
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