re: Ominous sign for Wall St. to Juz50 Juz,We agree on how to...

re: Ominous sign for Wall St. to Juz50 Juz,

We agree on how to calculate the PE ratio. I am more puzzled by your assertion that falling interest rates are bad for stocks.

If a stock was guaranteed to have an EPS of 0.10 forever, how much would you pay for the stock if the interest rate was 10%? How much would you pay if the interest rate was 5%?

The correct answers are approximately $1 & $2, as interest rates fall the stock goes up - contrary to the assertion in your original post.