Zeev's Turnips Patch-No Politics (ZEEV)

[market_watcher]

It would be interesting to show TA-only types a chart of the PE-ratio of the market over time without labeling it as PEs and see what their opinion of it was. For that matter, any other fundamental measure that is out of whack with its historic mean.

I think to a certain extent people who are either new to TA or who have been told that 'only TA matters' are being sold a bill of goods by being told that fundamentals don't matter, so they can be safely ignored. Some fundamentals can actually be charted and those that can, like PE's, like ratios of debt to income, like aggregate tax receipts, are not pretty pictures.