Peter Lynch states that the S+P 500 p/e historically has bounced between 10 and 20. When it gets near 30 it adjusts lower fast! Now it’s dropped from 38 in Jan to 28 in June after rising interest rates.
You know that a crash is on the way when commentators laugh at warnings of overvaluation. Some people never learn from history. As Jack Bogle pointed out the only real return is 2% dividend plus earnings growth, typically around 4-5%. 7% in total. Above that is likely speculative returns. NVIDIA has grown by 200% in the last year. Other large tech by over 100% . Have their earnings gone up by this amount ? No it’s a bubble ready to burst. Only waiting for a trigger to burst it. Probably caused by institutional investors who will sell at the top triggering a large fall, who will then buy back at the bottom. The losers will be retail investors
![What is P/E Ratio? [and Why it SUCKS!]](http://i.ytimg.com/vi/BAxlrz2TM3Q/mqdefault.jpg)
Peter Lynch states that the S+P 500 p/e historically has bounced between 10 and 20. When it gets near 30 it adjusts lower fast! Now it’s dropped from 38 in Jan to 28 in June after rising interest rates.
It is even higher today than in Jun 2021: Dec 27, 2021 40.19. Again S&P is 30 down from 36 in Jan 2021. So which do we believe? Shiller of S&P P/E?
Interest rate is king always
Shiller P/E seems to be peaking but S&P P/E ratio seems to dropping. What does that mean?
I agree the PE ratio is important but Miles made great points.
You know that a crash is on the way when commentators laugh at warnings of overvaluation. Some people never learn from history. As Jack Bogle pointed out the only real return is 2% dividend plus earnings growth, typically around 4-5%. 7% in total. Above that is likely speculative returns. NVIDIA has grown by 200% in the last year. Other large tech by over 100% . Have their earnings gone up by this amount ? No it’s a bubble ready to burst. Only waiting for a trigger to burst it. Probably caused by institutional investors who will sell at the top triggering a large fall, who will then buy back at the bottom. The losers will be retail investors
Tech drives pe higher and higher, need to redefine overvalue line
yeah that's what I was thinking
amazing, fast forward 11 months so true they predicted market crash!!!!!
The market is where it was 11 months ago.
no
NO!
Sundial stock to the moon soon ❤
SEPT 3 2021 THE NIGHTMARE BEGINS
Hmm