P/E Ratios and Inflation / Deflation

I recently came across an interesting chart titled “Relationship Of Inflation and Price/Earnings Ratios (1900-2008).”  It is from Crestmont Research and can be found at this link: http://www.crestmontresearch.com/pdfs/Stock%20Inflation%20&%20PE.pdf It shows the effect of inflation and deflation (as defined by the CPI) on the P/E Ratio. I think that it is worth looking at for a variety …

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What Is The Stock Market “Telling” Us?

With the stock market (as seen in the S&P500) recently near the 1020 level, there is no debating that the rally since the early March lows of 666 has been a very strong one.  Also, there have been very strong rallies in other markets as well (Nasdaq, Emerging Markets, Debt Markets, etc.) Below is the 1-Year Daily …

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Is The Stock Market Rally a ‘Validation’?

As seen in the Fortune story of June 15 titled “Economy in ‘early stages of repair’”: “The stock market’s rally serves as “broad validation” of the Obama administration’s financial rescue efforts, Treasury Secretary Tim Geithner said Monday.” While ostensibly this is correct, and commonly-held theory states that a stock market rally would precede an economic …

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More Questions Regarding Green Shoots

In the last post, Warren Buffett commented what he was seeing with regard to signs of an upturn.  This link contains what John Rice, Vice Chairman of GE recently (6/19) said: “I am not particularly of the green shoots group yet,” Rice said today to the Atlanta Press Club, referring to a phrase used by Federal Reserve …

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The Concept of a “Super Depression”

Please note; some will find this post disturbing I would like to call your attention to the article titled “A S&P500 Target of 100?” which is found under the “Investor” heading here: https://www.economicgreenfield.com/prosperitybypencom-directory/ With the S&P500 currently at 893.72, I am sure that many will find the mere notion of the 100 level to be highly …

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Great Depression Stock Charts vs Our Current Period

I’m sure everyone has seen the various charts depicting the stock market during The Great Depression to that of our recent period. The comparisons that I have seen show a definite visual resemblance, and perhaps that is what is attracting such attention, as these charts have proven very popular. From my perspective, I think that any resemblance …

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“Opportunity of a Lifetime”?

One phrase that I have heard mentioned a few times is that the economic and market declines of 2008-early2009 created a “Opportunity of a Lifetime” to buy stocks, businesses, and other assets. I am not sure what reasoning is used to justify the “Opportunity of a Lifetime” phrase (and no reasoning has been provided).  It would …

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