djia 1907 crash to 2007/o8 crash comparison, page-11

Hey A1...

Break down of... current Historical PE's ASX20:

AMP 11.1
ANZ 7.8
BHP 10.7
BXB 14.2
CBA 7.4
CSL 29.4
FGL 94.3
MQG 5.4
NAB 7.2
NCM 10.0
ORG 23.7
QBE 11.3
RIO 4.6
SUN 12.5
TLS 12.7
WBC 7.6
WDC 8.6
WES 8.6
WOW 20.5
WPL 16.8

The Average of these is 16.2X if remove top and bottom as abnormal (ie FGL and RIO) then Average is 12.5X.

Historically - you will need to refer to the link on my signiture "Irrational Exuberance" and then open the Excel File, you will see that PE's have fallen to single digits in the 'bad' economic climates.

According to the data presented by Shiller the S&P as at December 2008 was at 15.39X. Which suggests one of two things either the Earnings is going to rise by roughly 33%or the Stocks need to fall by around 33% or a combination of both?

Hmmm interesting! Which confirms SP at 620 ish...