Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Re: S&P500 PE
Old 11-29-2006, 11:27 AM   #21
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,674
Re: S&P500 PE

Originally Posted by MasterBlaster

Here's a link to 36 (or so) stock market indicators:
Great page of graphs. I suppose there is always conflicting information and "you pays your money and make your choice". Or I, like most employeed people, just DCA for the length of the career and withdraw 4% a year in retirement and hope it all works out.

T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: S&P500 PE
Old 11-29-2006, 07:15 PM   #22
Thinks s/he gets paid by the post
2B's Avatar
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: S&P500 PE

Originally Posted by justin
When PE's are around the level they are now, it doesn't really tell you much. When they dip to 5 and earnings growth going forward will be flat or better, then it is a good time to buy. When PE's go up to 25, 30, 35, the market gets more risky - ie you are paying a decent sized speculative premium.
Unfortunately, the horrible truth is that big market up moves usually happen when PEs are high -- 20+. The PEs are usually high when the earnings fall and stocks crash. Earnings start to improve but the PEs are still high when the market responds with a killer rally.

Rallys when the PEs are high can keep on going because higher earnings keep feeding the fire. When earnings fall off the end comes. It is usually drawn out and painful. Eventually, the PEs fall to much lower levels.

The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: S&P500 PE
Old 11-29-2006, 07:59 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 13,016
Re: S&P500 PE

Originally Posted by MasterBlaster
Oh why just use the S&P500 PE indicator when you can use 36 separate indicators...

Here's a link to 36 (or so) stock market indicators:
Hey, great resource! Thanks for the link!

Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Re: S&P500 PE
Old 11-30-2006, 06:19 AM   #24
Recycles dryer sheets
perinova's Avatar
Join Date: Apr 2006
Posts: 414
Re: S&P500 PE

Great link!

Some of those indicators don't seem to offer any long term indication whatsoever.

Notice: The yield curve spread doesn't look good.

The S&P 500 Dividend Yield vs. Treasury-Bill Yield, neither.
But the 30 Yr. T-Bond Yield Minus Dividend Yield is OK does it mean the market is a good long term value but we will have a correction?

perinova is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
S&P500 vs. other asset classes JJac FIRE and Money 0 05-07-2007 05:53 AM
CY 2005 Rtn. - S&P500 vs. 500 Index Funds Telly FIRE and Money 5 01-07-2006 03:02 PM
Keep S&P500 or trade it for SDY!! trixs FIRE and Money 18 12-17-2005 11:42 AM
4% of what? RatherBeFishn FIRE and Money 185 04-03-2005 02:26 PM
How often does a 1% I-Bond beat the S&P500? intercst FIRE and Money 18 06-11-2004 10:30 AM


All times are GMT -6. The time now is 03:37 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.