well the problem with me talking about P/E ratios is i dont think they mean much, BUT

in 1932 the $DJI traded at a higher P/E ratio than in 1929. inflation kills P/E ratios.
thats why russia can have the lowest P/E ratios and not be "cheap".

P/E's--for a whole country--have more of a correlation with inflation than they do with
growth.

The problem with markets right now isnt P/E's. there is a lot more fundamental damage than
that.

Unfortunately, earnings estimates are unreliable. PE multiples are contracting, and
earnings are going to shrink - a double whammy. We still have more downside.

20 Times earnings! Amazing. Trades like we have growth! Look at BAC quarter and the
measures they are taking to sidestep some ugly discounted cash flows. Nobody is going to
weather this storm.

"The Stoxx 600, down 34 percent this year, was valued at 10.05 times the reported earnings
of companies in the index yesterday, the cheapest since Bloomberg began compiling the data
in January 2002. The MSCI World Index traded at 12.83 times profit yesterday, the cheapest
since at least January 1995, while the Standard & Poor's 500 Index traded for 20 times
earnings."

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVLI3fw.vgEs


See What I see now!?!?

I ran by those statistics on bloomberg

NO, I think the s&p is trading around 12 times estimates...but we all know those estimates
are too high. Probably really trading at about a 14 PE. Dean

is it true the s&p is trading at 20 times earnings! LOL, a relfection of more downside!
The msci is already at 12 times earnings lowest since 1995!

Help!