Bespoke Investment Group wrote an interesting article recently regarding the big uptick in Price Earnings Ratios (PER) in the S&P 500 Index:
"The most recent new high for the S&P 500 has been accompanied by a big tick higher in the trailing 12-month P/E ratio. We'll definitely need to see some earnings growth in 2010 for this rally to continue."
The trailing 12 months P/E ratio has gone up from 10 to 24.50 in only 9 months. As Marc Faber said, "It will be more difficult to make money in 2010 as the markets become more volatile. I think 2010 will be more of a year when not to lose any money will be very important. I am a little more cautious in general."
Related ETF: SPDR S&P 500 (ETF) SPY
2 comments:
"Investors poured $11.1 billion to U.S. equity funds in the week ending Dec. 23, the highest amount in 79 weeks and slightly offsetting the record outflows from such funds this year, fund tracker EPFR Global said on Tuesday." in CNBC
That is bearish!
S&P on track to have the best year since 1998:
"The Dow, the S&P 500, and the Nasdaq are all on pace to chalk up their biggest yearly percentage gains since 2003, and with a gain of about 1.5 percent this week, the S&P would have its best annual advance since 1998."
Post a Comment