P/E and indices ( SPX, COMP and RUT )

We know a major force for powering this market is company buying back their own stocks ..

This portion of buyback stocks could generate its incoming ( when stock prices go up), which in turn help offset

     r = P/E , making this ratio go up slowly .. which again could attract further investing.


Only relative big companies have extra cash to do buying back, small companies will not have that power.

So S&P 500 is the index to go, not RUT ...


QQQ is different since people don't care  about P/E for tech companies .


Therefore, QQQ is the best, next is S&P 500 ...

所有跟帖： 

• avg S&P p/e is around 17, RUT is 30 ! -jw2009- ♂ (0 bytes) () 11/18/2015 postreply 15:21:00

• 请不要误导， 哪里来的？ -猛牛- ♀ (373 bytes) () 11/18/2015 postreply 15:25:19

• CNBC ! -jw2009- ♂ (0 bytes) () 11/18/2015 postreply 15:26:24

• There are different ways to look at P/E .. forward ..trailing . -jw2009- ♂ (0 bytes) () 11/18/2015 postreply 15:28:03