Comments on: Historic P/E Ratio for the S&P 500 http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 17:06:25 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Curly http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/comment-page-1/#comment-161621 Curly Sun, 12 Apr 2009 01:31:11 +0000 http://www.ritholtz.com/blog/?p=20834#comment-161621 By downloading the accompanying table/spreadsheet and adding a columns for the 2yr simple moving average (SMA) of the P/E ratio and 10*Log of the S&P 500 price, I plotted 2yr SMA and 10log Price by date. Interestingly, market timing using sharp reversals of the P/E SMA over the last 82 years was nearly ideal with 11 periods in and out of the market. By downloading the accompanying table/spreadsheet and adding a columns for the 2yr simple moving average (SMA) of the P/E ratio and 10*Log of the S&P 500 price, I plotted 2yr SMA and 10log Price by date. Interestingly, market timing using sharp reversals of the P/E SMA over the last 82 years was nearly ideal with 11 periods in and out of the market.

]]> By: jbruso http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/comment-page-1/#comment-151878 jbruso Mon, 09 Mar 2009 04:34:57 +0000 http://www.ritholtz.com/blog/?p=20834#comment-151878 This is a perfect chart. Very telling. What would you all say is an appropriate P/E ratio for the S&P now given future earnings expectations? 10? 8? This is a perfect chart. Very telling.

What would you all say is an appropriate P/E ratio for the S&P now given future earnings expectations?

10? 8?

]]> By: JasRas http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/comment-page-1/#comment-151324 JasRas Fri, 06 Mar 2009 23:14:06 +0000 http://www.ritholtz.com/blog/?p=20834#comment-151324 Fleckenstein said in the 2000-2003 markets that Greenspan's actions were only delaying the ultimate direction and destination that the markets would go... I remember him saying that when he was commentating on Realmoney. And he said the delay would cause more pain. 2 for 2... It's all come true. Fleckenstein said in the 2000-2003 markets that Greenspan’s actions were only delaying the ultimate direction and destination that the markets would go… I remember him saying that when he was commentating on Realmoney. And he said the delay would cause more pain. 2 for 2… It’s all come true.

]]> By: leftback http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/comment-page-1/#comment-151170 leftback Fri, 06 Mar 2009 17:39:58 +0000 http://www.ritholtz.com/blog/?p=20834#comment-151170 It is very revealing. 2000, not 2007 was really 1929. It's later than many people think. More compression in store chaps, look at the late 30s and the 70s. The 70s really were a bitch, weren't they?? It is very revealing.
2000, not 2007 was really 1929. It’s later than many people think.

More compression in store chaps, look at the late 30s and the 70s.
The 70s really were a bitch, weren’t they??

]]> By: Mike in Nola http://www.ritholtz.com/blog/2009/03/historic-pe-ratio-for-the-sp-500/comment-page-1/#comment-151061 Mike in Nola Fri, 06 Mar 2009 13:50:31 +0000 http://www.ritholtz.com/blog/?p=20834#comment-151061 Says it all about the "wisdom of the market." Says it all about the “wisdom of the market.”

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