Ander's Market Theories

[AnderL]

I've been looking at P/E's on a lot of S&P companies and they are far over priced. Especially the financials. We are talking about even with the current implosions of their balance sheets they are still trading in multiples.

Of the financials
GS is trading at 4 times earnings
BAC at 16 times
JPM at 16 times
DB at 7 times

S&P500 is trading at 13 times earnings.

So why do the financials warrant to trading at a higher premium than the broader market. That bailout money is not helping them grow its helping them get out of a hole. I think we might see S&P at 8 by next year.