Yep, that's completely accurate and note that I left out the most recent data point (1912 on 06/30/09) because it would ruin the scaling. Click here for a copy of the appended S&P spreadsheet, all I did was take PE quotes directly from the S&P website. In fact, according to the Standard & Poors, the trailing 1 yr PE is projected to go negative in the quarter ending 09/30/2009! Ok, the headline number (1912) is partially based on estimated earnings for the most recent quarter since not all companies have reported, but frankly, it doesn't matter that much because the PE is so ridiculously large. If the PE is really 1500 or really 2500, does it make all that much difference? Its a massive stock market bubble any way you slice it. Compare this to the historic highs of the dot com bubble (~50) or any other bubble and its way, way, way higher. If you want to work out the details on your own, start here and please let me know what you figure out.I am appalled that anyone would actually try and justify this rally based on value when its clear that fundamental analysis is completely worthless in this market. I think the markets can go higher but I sure feel sorry for those sorry bastards who buy stocks anywhere near here for the long term. Please note that I still expect a substantial move higher in price from here before this bubble pops. Recall that the Nasdaq broke out last week and notice that the S&P came pretty close today.
This is posted on reddit here.
