By Spencer, At month end the S&P 500 PE on trailing operating earnings was around 24. In my model that is expensive, but not massively so. Except in the irrational exuberance market of the 1990s, a PE of over 20 has never been sustained and always signaled a major bear market. Trailing earnings does include […]

By Spencer: Well at least the stock market seems to like Obama’s economic package. But every day I listen to CNBC analysts and others who seem to believe they did better under Bush’s and want to stick with the policies that generated a 40% stock market decline.

by Divorced one like Bush The Yahoo Financial page has had this headline from the AP up for a while today:Top StoriesInvestors are cautious as swine flu cases increase- APThis is the first line: The swine flu gave Wall Street a reason to turn cautious. The Dow Jones industrial average gave up a midday recovery […]

There is a reason I never believe people who judge the health of a company by its credit rating: the evidence isn’t there, and everyone in the market knows it isn’t there. Here is a prime example: General Electric (GE; the company that Jack eviscerated) has a AAA credit rating. It is also paying a […]

by Divorced one like Bush Concerned about the cause of the Dow? Not to fear. Many have been working on it such as Glenn Greenwald.The market does not like someone who is not like them so goes the Mc Cain clan. It is possible, but then Glenn asks for proof and finds an economist of […]