Showing posts with label PE ratio. Show all posts
Showing posts with label PE ratio. Show all posts

Sunday, 11 October 2009

What's Behind The Stock Market Rally?



The above is a chart I found over at Jesse's Cafe Americain, a good blog. It shows how the current equity rally is been dirven by monetary inflation that is not finding its way to the real economy, but to asset markets. As a result, the S&P500earnings multiple has risen to the highest level ever. I suppose if you can have a 'jobless economic recovery' you can easily have an 'earningsless bull market'.