a must read on us market a fall is near, page-23

mem

in regards your question on which index had a PE of roughly 10 prior in 1987, just prior to the crash, I believe it was the aussie All Ordinaries index.

I don't know what the other major indexs were trading on.

The reason I asked for the stat was to give me a perspective on from where a market can crash, and it became very obvious that excessively high valuations is simply not required for a crash to happen, much less a correction. It would be logical to say it is required, but history tells us very loudly and very clearly its not a necessary requirement.

however, a poor economic outlook is!! you'll find that every major crash that has affected most world indexes, has been followed by economic recession to some degree - the stock market is a leading indicator, and it tends to lead by yrs!!