- 8 June 2008
- Reaction score
Ok, and happy with that;What are you missing? How about S&P500 earnings coming in at $225/share. Put a x20 multiplier on that and you have a level of 4500. The market isn't overvalued at all. In fact it is a little undervalued.
What has made the 'difference' are the cyclicals hitting the ball out of the park.
Of course cyclicals infers that at some point, earnings will fall. But atm, we are undervalued. Get ready for the summer rip higher.
but isn't volatility also/first supposed to show market volatility, and regardless if we are still in bull mode or not, market volatility is high it seems with yoyo actions in the last quarter or so, so my puzzlement; so is volatility an indicator of market volatility anymore or just a guide to investor anxiety
Nevertheless interesting stat, not that I see PE of 20 as the base more PE 17 to 18 which would bring a right S/P of around 3850 vs current 4200.
So we are extended..but not by much and I agree we are in abnormal time and endless QE should results in higher PE so yes no issue with 4500 or even PE of 22 or SP500 near 5000..so yes we could see big growth in the coming months