Bob Bronson (BRONSON CAPITAL MARKETS RESEARCH) looks at the long term P/E cycle:
Bob Bronson notes Supercycle Bear Market bottoms have little to do with current P/E ratios. Financial theory and 138 years of history covered in our P/E Predictor Study I demonstrates their only predictive value is if earnings in the denominator are properly averaged over a multi-year period and the results are used to predict stock market prices over the next 10 to 20 years....
Thursday, January 15, 2009
Bear Market Bottoms & P/E Ratios
From The Big Picture: