The red line charts the S&P500’s price to earning ratio for the past 130 years. When P/E ratios are high the market is overpriced. When they are low the market is underpriced. Even after the recent crash, P/E ratios still look higher than historical averages. The black line shows interest rates which freaked out in the 1970s but are back to normal so you can ignore the black line. View Image ›
Right now, the Dow is up over 900 points, making it the biggest daily point gain by far in the history of the stock market. The superlatives continue on Wall Street, but for once it’s some good news. Read More ›
Click image for a great Wall Street Journal article that puts the current financial crisis in perspective. Love this quote from the article: “The attitude today is sort of like the one people have when they call an ambulance,” said Art Hogan, chief market strategist at Jefferies & Co. “When the ambulance gets there on time,” they are relieved. “Then they stop and think … right, we need an ambulance.” View Image ›
