Is the bottom in for the bear? Market valuation measures suggest not

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

If October is indeed the bottom, it's the richest bottom in decades.

"At all prior major market bottoms over the past four decades, the forward 12 month PE multiple drops to 9-11x," Nick Raich at The Earnings Scout told me. If October is indeed the bottom, "it would be the highest forward 12-month PE ratio at a market bottom in over 40 years." Other strategists have also noticed that the S & P 500, despite a 20% drop in 2022, is still trading at a rich valuation.

Analyst earnings estimates for 2023 have come down, but not by much. Instead of $237, estimates are now $229, and the multiple is now 16.7 times forward earnings. This goes to the heart of the problem: Somebody is wrong. Analysts and investors, for the most part, are still pricing in a very shallow recession. That would mean that earnings drop very little, and multiples can stay relatively high. If that happens, and we get a shallow recession, then prices and earnings are not crazy.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

CNBC is just a cheerleader for markets. Sucker the little guy in so Wall St can wipe them out. Remember CNBC was THE BIGGEST Crypto 'Currency' pumper in the world.

It's seem FII is selling shares from bse_sensex and collecting money to buy shares in their own country which is on very discounted price

Forget Stocks Think Gold Think Gold Mining Stocks.

Always negative

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ERCOT’s independent monitor says Texas shouldn’t meddle with power marketMany state lawmakers are preoccupied with crafting state laws that will lead to new natural gas power plants in Texas. The focus on electricity sources that... ercot's independent monitor didn't freeze to death in february 2021 Who’s turning off electricity services before thunderstorms even reach a projected area including cell services that keep residents from tracking potential tornados & calling 911 in case of emergencies in general or due to injuries during a storm? Some CRUEL DEMON in Texas is!! Sorry Texans, but you get what you vote for! gregabbottfailedtexasagain
Source: dallasnews - 🏆 18. / 71 Read more »

Stock Market Outlook 2023: Risks Skewed to the Downside  | Investing.comStocks Analysis by Fawad Razaqzada covering: DAX, Nikkei 225, DAX Futures, US Dollar Index Futures. Read Fawad Razaqzada's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »