Stock Bulls are Going to get Hit Hard. S&P P/E = 140
According to Standard & Poor's, the price/earnings ratio for the S&P 500 on September 30 rose above 140. Investors were paying over $140 for each dollar's worth of reported earnings. Given the fact that this ratio has never before reached 50, this is a P/E mania like no other in stock market history. (Re here
The hope is increased earnings: the elusive profits that should be here by now. The experts sound like the chief economist of the National Association of Realtors in 2007. They offer no data to support their boundless optimism.
I never expected the FED and Co, to sacrifice it's legitimacy in order to run up the market and blow this huge bubble. It is nice to see all these new Fool accounts created in 2009 climb to the Top of Fooldom riding the "liquitity wave". But I expect most of these "Allstars" will disappear once the FED stops printing or REAL interest rates hit.
The FED will not want hyperinflation to hit. They will put on the brakes before that happens and the US market will tank.
Got Gold? - real gold? Not the paper gold....