How "Cheap" is the Market?
I saw this chart of the day picked up on Big Picture.
The caption reads, "Earnings are down 60% over the past 17 months making this the biggest drop on record.
The way I see it is the price of the market had the expectation of future earnings priced in it. I saw the market as way over valued at given levels of earnings. And now earnings are down 60%.
I think the market is still expensive. I just don't see earnings going into a strong recovery in the next decade.