Friday, June 12, 2009

A Relatively Smut-Free Post

Tramp is completely aware that most of you don't read this blog for the purposes of enlightenment on accounting and finance topics but nevertheless, we are passing along this interesting post from FT Alphaville.

Long/short: S&P 500 is trading at 130 times earnings. Historically, that's expensive. We're talking stupid expensive.

It is based reported earnings (as opposed to forecasted) so 2008 makes it a little skewed but, as the post points out, earnings in 2009 will have to jump through the stratosphere to get the P/E back to something seemingly normal.

Sorry, for the diversion. We'll get back to the smut now.

130 times earnings [FT Alphaville] Sphere: Related Content

No comments:

Post a Comment