Gotta love ZERO RISK in the SP500 = $$$

Discussion in 'Trading' started by makloda, Jan 27, 2007.

  1. 10 is cheap, 15 is fair value, 20 is overpriced.
     
    #1021     Feb 13, 2007

  2. Sure
     
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    #1022     Feb 13, 2007
  3. inflate or die. The slogan for the global economy
     
    #1023     Feb 13, 2007
  4. NQ about to go red.
     
    #1024     Feb 13, 2007
  5. Mvic

    Mvic

    NQ/QQQQ's is the short to own in this market. Buy the dips using ES.
     
    #1025     Feb 13, 2007
  6. Actually, what matters is the differential between the stocks earnings yield (the reverse of P/E), and the 10yr bond yield. The stocks are underpriced by this yardstick, as well.
     
    #1026     Feb 13, 2007
  7. <i>"The current P/E ratio of S&P 500 is the lowest in the last 10 years, making the stocks very inexpensive. "</i>

    That is fundamentally true. So, why aren't the indexes rallying hard on rising volume each time they break to new highs?

    Where are all those long-term investors trampling each other at the bullish feeding frenzy?

    Definite disconnect somewhere.
     
    #1027     Feb 13, 2007
  8. I dont understand why all of sudden we are going to have multiple expansion this year. The ten year was roughly in the same spot 3 years ago. If investors really wanted to pay up wouldn't they have done it years ago?
     
    #1028     Feb 13, 2007
  9. That's because the yield on the 10yr gained 0.5% since the end of November 2006:
     
    #1029     Feb 13, 2007
  10. And a fat lot o' good thats done ye!
     
    #1030     Feb 13, 2007