Company earnings continue to rise. Granted, much of the gain has been in oil and oil services but the overall average is getting to be large. Forward earnings on the S&P are over $84 which means the forward PE is at 14 times! At 14 times earnings, the earnings yield exceeds 7%.
CHECK OUT:
The Market and Corporate Earnings
Investment Yield
IT IS TIME TO LOAD THE BOAT! KEEP JUST A LITTLE POWER DRY AS SENTIMENT FIGURES HAVE NOT GONE TO EXTREME LEVELS. MANY SENTIMENT INDICATORS ARE EXTREME BY ONE STANDARD DEVIATION. JUST A LITTLE MORE BAD NEWS PLAYED UP IN THE PRESS COULD SHOOT THESE "PERCEPTION VERSUS REALTY MEASURES" TOO TWO STANDARD DEVIATIONS. SUCH AN EVENT WOULD SIGNAL THE BEST BUYING OPPORTUNITY IN THREE YEARS!
Tuesday, October 11, 2005
EARNINGS UP--STOCKS DOWN!
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