General Discussion

Johnny2X2X

(23,456 posts)

6. There's a new paradigm IMO

Reply to Bernardo de La Paz (Original post)

Wed Sep 24, 2025, 11:58 AM

Sep 24

PE Ratio kind of went out of whack in the 90s and there's a good argument to be made that historical context before then is now meaningless.

I know analysts who still base everything on the 100 year average PE ratio, they have been predicted doom almost non stop for 30 years.

To me, macro economic indicators are what I consider more now. The US economy is simply regular people having money and being willing to spend it, if that is the prevailing condition, corporations will do well. We're in for a bumpy ride due to tariffs and the layoffs they're causing, companies being overvalued in comparison to their earnings is a small factor, but not the main one IMO.

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If stock market Price-Earnings ratio alarms you when historically compared, this will scare you [View all] Bernardo de La Paz Sep 24 OP

Please explain what this means. yardwork Sep 24 #1

PE ratio is price to earnings. LuckyCharms Sep 24 #2

PE Ratio is price earnings ratio. I updated thread title (thanks) and explain a bit here Bernardo de La Paz Sep 24 #3

Thank you! yardwork Sep 24 #4

I know you asked Bernardo, but if I may... LuckyCharms Sep 24 #5

That is what I suspect, too. yardwork Sep 24 #7

I watch stock "candles" every day... LuckyCharms Sep 24 #8

Stocks drop on good earnings if the "guidance" is negative or if it is less than expected or if a competitor is coming Bernardo de La Paz Sep 24 #10

Think about this, Bernardo... LuckyCharms Sep 24 #11

The market is full of idiots and greater fools. They can be taken advantage of without manipulation Bernardo de La Paz Sep 24 #13

Good luck to you... LuckyCharms Sep 24 #14

1) Market timing is almost impossible, 2) tRump is not the only factor, 3) There's money to be made in any market hi/lo Bernardo de La Paz Sep 24 #9

There's a new paradigm IMO Johnny2X2X Sep 24 #6

Nah. The original growth stocks were exploiting the New World (the Americas). Then Bernardo de La Paz Sep 24 #12