S&P 500 May Jump 70% on Valuation, Economy Rebound, Fisher Says

Discussion in 'Wall St. News' started by Daal, Apr 17, 2009.

  1. Daal

    Daal

    "Stocks are cheaper compared to long-term interest rates than they have been in anyone’s life,” he added.

    Wall Street strategists estimate that S&P 500 companies will earn a total of $47.45 a share this year, according to the average projection of 11 forecasters surveyed by Bloomberg News. That gives the index a so-called earnings yield of 5.48 percent, dividing by yesterday’s close. The 10-year Treasury bond is paying 2.84 percent, according to data compiled by Bloomberg. "
    http://www.bloomberg.com/apps/news?pid=20601087&sid=aSOmYN8XM3Rc&refer=home

    Earnings yield compared to interest rates?The reason risk free rates are so low its because the market thinks the economy is so bad
     
  2. Ken Fisher

    One of a few goodies:

    12/10/07 : "...there's room for more of a bull market ahead. I want to be the first to say we definitely are in a New Era of above-average returns...I'm expecting another above-average year ahead, an easy one. ...buy stocks and be happy."

    -------

    This guy should be a fixture on Kudlow and Kronies.
     
  3. Some guys here make fun of my calls...but Ken Fisher is just about as accurate as a coin-flip. Some of his calls went busted wildly like the bottom of the homebuilders in 2006 and then the double bottom on the S&P in Spring of 2008. There were individual stock calls that turned into penny stocks...
     
  4. CET

    CET

    His opinion is worth nothing. It seems you are an investor, and this is a trading site.
     
  5. aresky

    aresky

  6. thedewar

    thedewar

    I really dont get where people pull some numbers from (out of their ass one could assume)... large unemployment, bad consumer sentiment, potential for inflation, massive debt problems still linger.... where the hell does 70% come from?
     
  7. S2007S

    S2007S

    What a worthless opinion, S$P isnt going anywhere anytime soon, sit back and relax, you will be able to buy the markets down at these levels for a verrrrrry long time.
     
  8. The appropriate yield comparison is between equities and corporate bonds, NOT equities and Treasuries. By that measure, equities don't look particularly cheap.
     

  9. New Era. New Economy. Goldilocks Economy. Used car salesmen.
     
  10. Isn't this guy from IBD?

    I think their top 100 stocks probably fared the worse in the last 12 months of any publication I've ever read.
     
    #10     Apr 17, 2009