SP 500 PE Ratio 09-08-09

Discussion in 'Stocks' started by Rickshaw Man, Sep 8, 2009.

  1. This according to Reuters. Some say this does not matter during a recession. After the consumer credit numebrs I just don't see how companies are going to catch up.
  2. Consumer credit data. I suspect the spin masters will some how try and spin something out of this. Bottom line how are we going to grow GDP?
  3. even if the P/E were favorable, I still think it would be questionable in an economy that required

    - a trillion bailout for banks

    - another trillion in stimulus

    - cash for clunkers car buyer subsidy

    - 1.8 trillion dollar annual deficit

    just to stay afloat - it suggest that the true demand isnt there, it's all artificial
  4. I agree, I just wonder when the market is going to come to terms with this.

    Im certin the Fed is feeding Banks with free money to prop everyhing up. Pulling demand forward is going to create a huge vacuum on the other side of all this.

    But the goverment may just lie about the numbers and keep telling everyone things are getting better. I mean they have gone this far.
  5. That is the the whole story in a few lines. Good post!
  6. jnorty


    Rickshaw i just looked at a 100 big co's earnings and i almost fell down. at least 70 HAVE HAD EST CUTS THE LAST 4 MONTHS FOR 2009 AND 2010 YET THERE STOCKS KEEP SKYING WITH MANY UP 5-10 FOLD. go look at ests for fdx,utx,dd,ge,ups,cat . its the biggest scam on earth. but its the mkts job to sniff out the fraud and punish it. if it doesn't then it doesn't. people all know whats happened is a scam and lie but nobody cares as long as they're making money. those are the facts.
  7. you guys have no clue. we are in the middle of jobless high PE recovery - nothing wrong with that.

  8. The market keys off of 2010 estimated earnings at this stage in the year, not 2009. 2009 is just about 3/4 in the bag. Unfortunately, some companies have run up so much that they are apparently beginning to price off of their "earnings power" rather than 2010 now.

    The P/E ratio in the first post must be LTM basis and includes adjustments (it's as reported).
  9. Margins look great when you cut 15% of your labor. lolololol
  10. You can't grow without labor.
    #10     Sep 8, 2009