 |
|
| 02-21-2010, 09:29 AM | #1 |
|
Lieutenant
 36
Rep 430
Posts |
Profits to support the stock indexes
I am trying to figure out if there are published ratios of value of common stock market indexes (Dow Jones, NASDAQ, S&P 500) and the profits generated by the companies that define them.
For the Dow Jones, it is probably easier to find because it is only 30 companies. http://finance.yahoo.com/q/ta?s=^DJI Maybe it is already in the indicators, but I can't find it in the help page. http://help.yahoo.com/l/us/yah....html Is this ratio available? It appears to me that as long there are profits, those index will stand, otherwise...  |
| 02-21-2010, 11:07 AM | #2 |
|
Lieutenant Colonel
 
146
Rep 1,629
Posts |
Are you talking just about profits in nominal terms or are you, perhaps, talking about the price of the market relative to profits(earnings)?
__________________
Cars>Women
|
|
Appreciate
0
|
| 02-21-2010, 04:33 PM | #3 |
|
Lieutenant
36
Rep 430
Posts |
I got my answer. I learnt that I was talking about the P/E ratio.
My opinion is that the market is still over-evaluated by 20-30%. At current 20.42, you can't achieve a yield of 10% unless there is speculation, right? |
|
Appreciate
0
|
Post Reply |
| Bookmarks |
| Thread Tools | Search this Thread |
|
|
