S&P valuations at 10.2 forecast 2012 earnings, lowest since 1957...

Discussion in 'Trading' started by ASusilovic, Oct 3, 2011.

  1. The rout that erased $2.9 trillion from U.S. equities has pushed valuations in the Standard & Poor’s 500 Index 25 percent below the average level from the last nine recessions, even as profit estimates fall.

    Companies in the benchmark gauge for American equities trade at 10.2 times 2012 forecast earnings, compared with the average in economic contractions since 1957 of 13.7, according to data compiled by Bloomberg. At the same time, analysts have cut projections for profits next year by 2.6 percent to $110.78 a share, the biggest eight-week drop since 2009, the data show.


    It´s becoming more than ridiculous what´s happening in equity markets....Not to say paranoid... :cool:
  2. What does it mean 'American equities trade at 10.2 times 2012 forecast earnings'?
  3. That is ridiculous. That means nothing if 2012 estimates start getting drastically reduced. The s & p could then be trading at 15 times.
  4. S2007S


    I thought these markets were a buy according to all those big money managers hahahaha..... As I said numerous times there is absolutely no rush to go in and buy these markets, this is not a buy and hold market, you will be able to buy the S&P at these levels for the next decade, do not think for once this market is going to take off without you, there will be numerous opportunities to buy the S&P between 500-1500 for the next decade or 2. This will be the lost 2 or 3 decades!
  5. Remember the 2000 forecasts for 2001? 2012 earnings forecasts are fantasy numbers.