Comments on: Don’t Bite on the “Cheap Market” Bait

By: Long Term Earnings Charts | Naked Hedge Fund

Long Term Earnings Charts | Naked Hedge Fund — Thu, 27 Aug 2009 21:58:03 +0000

[...] The second chart shows the P/E ratios using both “Operating Earnings” and “As Reported Earnings”. (for some information on the difference in the earnings go to a previous post here) [...]

By: S&P Earnings Update | Personal Finance and Investing @ Naked Hedge Fund

S&P Earnings Update | Personal Finance and Investing @ Naked Hedge Fund — Wed, 04 Mar 2009 05:02:28 +0000

[...] Don’t Bite on the “Cheap Market” Bait [...]

By: Nicholas Lewarne

Nicholas Lewarne — Wed, 18 Feb 2009 03:51:17 +0000

Yeah i definitely think that its safe to say that the current P/E is at least 22.9, which is halfway between the “operating earnings” P/E and the “as reported earnings” P/E.

By: Will

Will — Wed, 18 Feb 2009 02:49:35 +0000

Great post and agree.

We may see some false rallies along the way, but if the S&P breaks the 750 closing lows and 741 intraday low, expect the Dow to be trading around 7000 or lower. This should trigger a major selloff on the S&P to account for de-leveraging and an inevitable hedge fund implosion. This is the trigger that will move the S&P down to 600-650 levels before the Gov’t finally says “enough is enough” and gain public support. At this point, expect them to do what it really takes to fix this mess…the creation of a $2 Trillion bad bank.

Support at 660 and 460 on the Spyders…5600 and 4000 on the Dow. All in the 1995-1996 timeframe.

If we can finally implode these hedge funds, the best buy opportunities will be Gold and Silver. They “should” sell off because it is the only thing in these portfolios that are worth anything.

By: Peter

Peter — Wed, 18 Feb 2009 02:10:03 +0000

Excellent point on the reported earnings. SPX is trading rich here – should be at least 1 SD below long term average. Fundamentally we should base out around 470…