Is America Shutting Down?
Sales Crashing...Business and Personal Bankruptcies Skyrocketing....States contemplating selling assets just to stay in business.....and weekly jobless claims STILL OVER 500K per week and rising!!!!!!
Our buddy portefeuille had this comment about a PE over 700:
I guess 723 is supposed to look scary. I hope people are aware of how fractions work. Say P = 1000 (that would be the S&P index in this case).
For aggregate earnings of E = (200,100,10,1,0,-1,-10,-100,-200) you get P/E = (5,10,100,1000,infty,-1000,-100,-10,-5).
So a P/E of 1000 or 10000000 or 10000000000000000000 is not much "scarier" than one of 100. The earnings E are not very different. Scare numbers would be small negative ones, like -5.
So the next time you want to scare an audience that remembers 1st grade mathematics try something like
Yes my friend it is 1st grade math....once you get to this level...really earnings are approaching ZERO...Z-E-R-O.......Nothing....Nada...
And when you are earning NOTHING you pay no taxes....and when you don't pay taxes government must cut.....
And since Government is HALF the GDP with a collective $6.5 Trillion dollar spend......what does that forecast for the future???