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Remember the old saying that when your bartender and barber start talking about the stock market, then it's time to sell?
Well, recently we are now hearing Joe Sixpack talk about Dow all time lows, AIG, GM, etc. I am wondering if all of the "hype" is played out.
Combine that with the fact that the S&P 500 trailing PE is now around 10 when its historical average has always been 15. The earnings divisor already has 3Q and 4Q 2008 earnings baked in...so it's not like you're looking at a valuation with overstated earnings.
I think I'm going to go on a value hunt...there are probably lots of companies right now who are making the same amount of money that they always did...yet are trading at a 40% discount. Let's see what I can find.
Well, recently we are now hearing Joe Sixpack talk about Dow all time lows, AIG, GM, etc. I am wondering if all of the "hype" is played out.
Combine that with the fact that the S&P 500 trailing PE is now around 10 when its historical average has always been 15. The earnings divisor already has 3Q and 4Q 2008 earnings baked in...so it's not like you're looking at a valuation with overstated earnings.
I think I'm going to go on a value hunt...there are probably lots of companies right now who are making the same amount of money that they always did...yet are trading at a 40% discount. Let's see what I can find.
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