It is quite misleading to buy or sell stocks based on SP's PE

It very hard to value the stock market just base on history or current  PE . SP's PE was about 100 in March of 2009, that was very high in history. However, that time was absolutely great chance to buy stocks. Earning change dramatically if the economy go to ressesion. Expecting earning for 2011 is about $90, it seem stock relative cheap now. but where to go now?  it is hard to say if the financial crisis happen again.

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• 老规矩是说对于cyclicals，you buy at high PE multiple -洋葱头儿妈妈- ♀ (422 bytes) () 08/17/2011 postreply 09:38:28

• AGREE。。回复：It is quite misleading to buy or sell stocks based on -tianfangye- ♂ (75 bytes) () 08/17/2011 postreply 09:40:30