I argued earlier in a post that the market was not significantly overvalued based on forecasted earnings and economic growth. I still believe my argument holds and that returns for the year for the SP 500 would be around 7-9%..not bad considering the gains of the last 2 years.
The decline in stocks has led to a huge decline in p/e ratios based on forecasted earnings.Should earnings exceed forecasts or companies increase dividends and buy backs it would be another positive for the market.
Below is S+P 500 P/E ratio via bloomberg
1 comment:
Aluminium inventory to climb further post-CNY
Trading Tips
Post a Comment