(Click for larger image)
The 30 components in the DJIA provide a sample for what might happen to the Nasdaq.
Monday, November 12, 2007
Welcome back to relative P/E valuations.
Something I regularly track are the P/E valuations on major indexes. They were doing just great until huge firms started missing numbers. Now they are extremely over inflated. The P/E in the DJIA more than doubled (from 18 to 46) as many companies lost tons (in the literal sense) of money this last quarter.
(Click for larger image)
The 30 components in the DJIA provide a sample for what might happen to the Nasdaq.
(Click for larger image)
The 30 components in the DJIA provide a sample for what might happen to the Nasdaq.
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1 comment:
Excellent highlighting of why PE ratios are so problematic in bear markets. Keep up the good work.
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