re: #125 Max Darkside

Timely topic…

BEWARE.

The Price to Earnings Ratio (P/E) of the S&P 500 is right now about 120 (I can give the XLS link right off S&P’s website). This is ridiculously high and a serious bubble in itself. Normal is like 25. Either earnings have to come up, or price WILL come down… A LOT… because 120 is 4.8 times too high. I dare say I doubt the market will to to 1/5th of what it is, but mark my words… Protect your interests.

I don’t think that number is right… P/E is price to earnings ratio. So for example Microsoft’s PE is about 10. Apple? About 22.

I think at it’s peak the S&P 500 Price Earnings Ratio was under 50…. I don’t think it has ever been 120.