Home › Forums › Financial Markets/Economics › It feels kinda bubbly right now
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Arraya.
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July 31, 2009 at 12:22 PM #440431July 31, 2009 at 1:58 PM #439701
DWCAP
Participant[quote=AN][quote=DWCAP][quote=Multiplepropertyowner]All I know is that my 401k is way way up.
P.S.
A 9000 stock market is not all that bubbly.
MPO[/quote]Says who? A bubble can form at any price level is profits dont support the share prices.[/quote]
What’s considered a bubble? The DOW was at ~9000 in 1998. Do you think we’re back to 1998 nominal profit level?[/quote]The point is that a bubble can form at any price level if underlying fundamentals dont support what is going on, irregardless of weither it was a justified price level before or not.
I suppose I would define a bubble as a time when prices begin to reflect expected future price increases (not company profit increases) and no longer follow basic valuation methods. If P/E ratios historically were between 20-50, and suddenly are now 700 and increasing, I would approach the situtation as a bubble; and then ask why it isnt.
July 31, 2009 at 1:58 PM #439901Participant[quote=AN][quote=DWCAP][quote=Multiplepropertyowner]All I know is that my 401k is way way up.
P.S.
A 9000 stock market is not all that bubbly.
MPO[/quote]Says who? A bubble can form at any price level is profits dont support the share prices.[/quote]
What’s considered a bubble? The DOW was at ~9000 in 1998. Do you think we’re back to 1998 nominal profit level?[/quote]The point is that a bubble can form at any price level if underlying fundamentals dont support what is going on, irregardless of weither it was a justified price level before or not.
I suppose I would define a bubble as a time when prices begin to reflect expected future price increases (not company profit increases) and no longer follow basic valuation methods. If P/E ratios historically were between 20-50, and suddenly are now 700 and increasing, I would approach the situtation as a bubble; and then ask why it isnt.
July 31, 2009 at 1:58 PM #440228Participant[quote=AN][quote=DWCAP][quote=Multiplepropertyowner]All I know is that my 401k is way way up.
P.S.
A 9000 stock market is not all that bubbly.
MPO[/quote]Says who? A bubble can form at any price level is profits dont support the share prices.[/quote]
What’s considered a bubble? The DOW was at ~9000 in 1998. Do you think we’re back to 1998 nominal profit level?[/quote]The point is that a bubble can form at any price level if underlying fundamentals dont support what is going on, irregardless of weither it was a justified price level before or not.
I suppose I would define a bubble as a time when prices begin to reflect expected future price increases (not company profit increases) and no longer follow basic valuation methods. If P/E ratios historically were between 20-50, and suddenly are now 700 and increasing, I would approach the situtation as a bubble; and then ask why it isnt.
July 31, 2009 at 1:58 PM #440300Participant[quote=AN][quote=DWCAP][quote=Multiplepropertyowner]All I know is that my 401k is way way up.
P.S.
A 9000 stock market is not all that bubbly.
MPO[/quote]Says who? A bubble can form at any price level is profits dont support the share prices.[/quote]
What’s considered a bubble? The DOW was at ~9000 in 1998. Do you think we’re back to 1998 nominal profit level?[/quote]The point is that a bubble can form at any price level if underlying fundamentals dont support what is going on, irregardless of weither it was a justified price level before or not.
I suppose I would define a bubble as a time when prices begin to reflect expected future price increases (not company profit increases) and no longer follow basic valuation methods. If P/E ratios historically were between 20-50, and suddenly are now 700 and increasing, I would approach the situtation as a bubble; and then ask why it isnt.
July 31, 2009 at 1:58 PM #440471Participant[quote=AN][quote=DWCAP][quote=Multiplepropertyowner]All I know is that my 401k is way way up.
P.S.
A 9000 stock market is not all that bubbly.
MPO[/quote]Says who? A bubble can form at any price level is profits dont support the share prices.[/quote]
What’s considered a bubble? The DOW was at ~9000 in 1998. Do you think we’re back to 1998 nominal profit level?[/quote]The point is that a bubble can form at any price level if underlying fundamentals dont support what is going on, irregardless of weither it was a justified price level before or not.
I suppose I would define a bubble as a time when prices begin to reflect expected future price increases (not company profit increases) and no longer follow basic valuation methods. If P/E ratios historically were between 20-50, and suddenly are now 700 and increasing, I would approach the situtation as a bubble; and then ask why it isnt.
July 31, 2009 at 2:07 PM #439711(former)FormerSanDiegan
ParticipantPlease point us to where it is reported that the S&P 500 P/E ratio is 700. I don’t see it on the chart referenced above. (Although that chart did have it at 160, which is alarming in its own right).
July 31, 2009 at 2:07 PM #439911ParticipantPlease point us to where it is reported that the S&P 500 P/E ratio is 700. I don’t see it on the chart referenced above. (Although that chart did have it at 160, which is alarming in its own right).
July 31, 2009 at 2:07 PM #440238ParticipantPlease point us to where it is reported that the S&P 500 P/E ratio is 700. I don’t see it on the chart referenced above. (Although that chart did have it at 160, which is alarming in its own right).
July 31, 2009 at 2:07 PM #440310ParticipantPlease point us to where it is reported that the S&P 500 P/E ratio is 700. I don’t see it on the chart referenced above. (Although that chart did have it at 160, which is alarming in its own right).
July 31, 2009 at 2:07 PM #440481ParticipantPlease point us to where it is reported that the S&P 500 P/E ratio is 700. I don’t see it on the chart referenced above. (Although that chart did have it at 160, which is alarming in its own right).
July 31, 2009 at 2:08 PM #439716ParticipantI guess this is what happens when the denominator goes to zero.
When does the P/E become a NaN ?
July 31, 2009 at 2:08 PM #439916ParticipantI guess this is what happens when the denominator goes to zero.
When does the P/E become a NaN ?
July 31, 2009 at 2:08 PM #440243ParticipantI guess this is what happens when the denominator goes to zero.
When does the P/E become a NaN ?
July 31, 2009 at 2:08 PM #440315ParticipantI guess this is what happens when the denominator goes to zero.
When does the P/E become a NaN ?
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