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http://zhurnaly.com/images/Historic_10_year_PE_ratio_graph.pngAfter all the euphoria of the past two decades and all the despondency of the past two months, where's the stock market? David Leonhardt's column a few weeks ago [1] in the New York Times offers a calm discussion and a revealing little graph. Compared to the long-term average 10-year (lagging) price-earnings ratio (~16) things are now ... roughly normal! It's not quite the end of the world after all.

(cf. TheCancerIdeology (1999-05-19), MoneyWisdom (2001-05-20), PopGoes (2001-06-19), BubbleBusters (2002-02-06), DowTheory (2002-07-27), NextEconomy (2005-01-31), ...) - ^z - 2008-11-13