His 10-year PE ratio would include the earnings from 2008 and 2009

Sep 17, 2014
1:35:16pm

Coach's Dad

which were pretty bad years for the SP 500. Taking those years away from the average earnings you get a PE ratio in the 22 or 23 range, which is still pretty high.

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Coach's Dad

Bio page: Coach's Dad
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Messages

Author

Time

This article should scare you. At the very least make you very wary.

Indy Coug

9/17/14 1:00pm

On how many minor occasions was the price earnings ratio higher than 26.3?

Kilgore Trout

9/17/14 1:05pm

Or, the high PE ratios could be an indicator that US companies have hoarded cash

newey-west

9/17/14 1:07pm

a better comparison is would be pe ratios after subtracting cash and short

cougarfann888

9/17/14 1:08pm

Hoarding cash should only cause high PE ratios if it was extremely cheaper than

midwestcoug

9/17/14 1:09pm

would you buy a company that 200 billion in cash that had a 100 billion dollar

cougarfann888

9/17/14 1:12pm

I agree with what you have stated, but that extreme of an example doesn't exist

midwestcoug

9/17/14 1:34pm

Sure, I agree with you. I guess that's what I'm saying...the amount of

newey-west

9/17/14 2:00pm

<< Deleted >>

cougarfann888

9/17/14 4:28pm

I just think making comparisons to those other times isn't air because the tax

cougarfann888

9/17/14 4:32pm

All three of those bubbles gave people reasons to believe they could be

midwestcoug

9/17/14 1:07pm

Couple that article with this information:

buhlcougar

9/17/14 1:19pm

Interesting stuff.

Y Mountain

9/17/14 1:22pm

And QE3 ends in October

Yugo

9/17/14 1:31pm

AND the home teaching message this month is on preparedness.

ForzaPuma

9/17/14 1:33pm

What is everyone's crystal ball on when significant inflation will hit?

UNLVcougar

9/17/14 1:33pm

When the economy finally improves

midwestcoug

9/17/14 1:36pm

His 10-year PE ratio would include the earnings from 2008 and 2009

Coach's Dad

9/17/14 1:35pm

I survived 2 of those 3 events already. Kept my money in the market, and it all

frontrowcougar

9/17/14 2:11pm

Yep, we call that "stocks going on sale"

supertux

9/17/14 2:38pm

I have no predictions but i bet with the optimists!

roseyscenario

9/17/14 9:07pm

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