Maybe the bulls here can explain how we are to get around all the debt that is vividly depicted in this chart:
Are you guys kidding me? After what has just happened to the sell-side analyst community, along with Elliott Spitzer breathing down everyone's neck, not too mention Sarbanes-Oxley how could anyone think that publicly traded companies and their CEO's would be signing-off on aggressive accounting practices? If anything, CEO's are "low-balling" conference calls and sandbagging their guidance. Get Real.
Too true, companies blowing away earnings and revenue forecasts in Q4 guiding down for Q1. I looking for Reg FD to prompt them to guide higher as the quarter develops.
There is a bubble in the S&P 500 or the Dow Jones Industrials. In fact, the median P/E for the S&P 500 based on consensus estimates from the folks at my Grandma's retirement home for the next 12 months is 30, for the Dow Jones it is 28.6 times earnings, and 100 times earnings for the Nasdaq. This compares to the long-run average P/E ratio of 14, which suggests that the DJIA and S&P are twice where they should be for a "normal" PE. Furthermore, bear markets do not end at such lofty valuations. In fact they usually end with single-digit P/Es. This suggests that the DJIA and S&P have more than the 50% to fall, and could fall as much as 75% from here.
I suppose the depth of the bubble is determined by the biggest players? And maybe the consensus or average opinion of the biggest player's about the depth of the bubble is the most accurate determination of what the depth of the bubble is because they call the shots? So what does Merril, Buffet, B of A and the other top players think? The bubble is an opinion formed by the top elite, and this opinion isn't disimilar to the other market opinions? Few companies aren't infalted (PE).
I ask the poster earlier: When was the last time that the Dow Jones or the S&P 500 traded at 14 times earnings?