Discussion in 'Trading' started by makloda, Jan 27, 2007.
10 is cheap, 15 is fair value, 20 is overpriced.
inflate or die. The slogan for the global economy
NQ about to go red.
NQ/QQQQ's is the short to own in this market. Buy the dips using ES.
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.
<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.
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?
That's because the yield on the 10yr gained 0.5% since the end of November 2006:
And a fat lot o' good thats done ye!
Separate names with a comma.