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

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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.

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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

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