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UAW Will Own 55% of Chrysler

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meh1304/29/2009 7:35:44 am PDT

re: #125 Max Darkside

The Price to Earnings Ratio (P/E) of the S&P 500 is right now about 120. 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.

According to this article, the S&P 500’s long-term P/E ratio is nowhere near 120:

S&P 500 P/E Ratio: Still Above Long Term Lows