it's that time of year...

[sophiaserpentia]

Comments

[theheretic]

Ya know, I'd heard in the 1990's that a stock with a PE over 28 was junk and due for a serious drop. Ever since the Dot.Com bubble things have gotten really out of whack on stock valuations and I think we're seeing this current Bull market due to inflation, not ACTUAL performance of the companies in question. I might be wrong, but that's what I think.

[sophiaserpentia]

An average P/E ratio of 143 is... surreal. It makes me question my sanity and wonder, what do the people on Wall Street know that we don't that has led them to gobble up stocks at what appear to be hyper-inflated prices? Do they think it's quaint to be concerned about trifling things such as a company's revenue, profit, and dividends? Because if this analysis is right, the market should still be around where it was in March, if not lower.

[theheretic]

Or perhaps they're running to stocks because the USD$ is going kerflooey and stocks have real value where dollars don't.

[sophiaserpentia]

These canaries have been croaking in the mineshaft for months:

http://community.livejournal.com/the_recession/420266.html