Bargain hunting day tomorrow ? => Investors are preparing to snap up shares of telephone, health-care and computer companies after last week's $2.1 trillion global stock market rout left U.S. equities the cheapest in 16 years. D.A. Davidson, LPL Financial Services and Credit Suisse Group, which manage a total of $771 billion, are bullish after the biggest decline in the Standard & Poor's 500 Index since September 2002. The benchmark for American equity is valued at 15.4 times estimated profit, the lowest since January 1991, according to data compiled by Bloomberg. http://www.bloomberg.com/apps/news?pid=20601087&sid=a4tg9V99WLjU&refer=home
WTF i just read an article by a bearish analyst say the the PE for the world market is at an all time high of 20.......and thus warned of an impeding world wide selloff (already underway). on yahoo finance i see the PE for SPY at 15.61 the analyst quoted above says the S&P is the cheapest in 16 yeast with a pe around 14. this is why i fu*king hate fundamental analysis......you can spin any story you like with statistics........best to just disregard all news/data and trade off technicals........technicals so have major drawbacks too but thats another issue for another thread.
"WTF i just read an article by a bearish analyst say the the PE for the world market is at an all time high of 20.......and thus warned of an impeding world wide selloff (already underway). on yahoo finance i see the PE for SPY at 15.61 the analyst quoted above says the S&P is the cheapest in 16 yeast with a pe around 14. this is why i fu*king hate fundamental analysis......you can spin any story you like with statistics........best to just disregard all news/data and trade off technicals........technicals so have major drawbacks too but thats another issue for another thread." try some reading comprehension what the OP (article) was saying is that SOME stocks are at their cheapest levels in years and are seen as values. NOT the S&P 500 as a whole (a cap weighted index dominated by about 20 stocks) so, again. you can't even read. as for why you HATE fundamental analysis. it's clear you don't understand fundamental analysis if you think that the fact that the PE for the S&P 500 (a cap weighted index) being relatively high on a historical basis means there are no bargains out there. i say this as somebody who makes my LIVING using technical analysis (daytrading futures) but who ALSO understands that fundamental analysis is a wonderful tool. fundamental analysis helps you find undervalued stocks. that you don't understand it, nor have the capacity for reading comprehension to understand what the article was saying - reflects on you, not FA hth