I'm starting to see around a third of the posts predicting total...

I'm starting to see around a third of the posts predicting total doom and gloom scenarios.

Funnily enough this makes me think we must be close to the bottom already. I wonder how low it will really go.

The Shares Weekly website says that as of last Friday the average PE ratio was 18.7. I could imagine that dropping to around 15 but struggle to see the average down much lower than that. Some of the blue chips are carrying massive PE ratios (eg BHP @ 76, BIL @ 47, COH @ 56) while most of them are a very reasonable 10ish.

Note that I think the US market is quite different and wonder whether if the DOW/S&P/NASDAQ continue to plummet we will eventually disentangle ourselves from following their moves.

I see one prediction for the all-ords on HC of 800 which assuming company earnings were static would give an average PE of less than 5. I don't think so!

Of course I'm not claiming to be right but the doom and gloom is becoming so pervasive I'm thinking we must just about be at the bottom.