ajtj99's Market Pulse

[ajtj99]

Individual stock P/E's mean nothing. They are inventions by sell side analysts to justify making you buy the stock they want to push.

Trailing P/E's tell you what happened last year. Forward P/E's tell you what sell-side analysts hope you will believe will happen in the future.

The market is supply and demand. If a piece of trash has a P/E of 200 but people want it, it will be bought. If a stock like GM has a P/E of 5 like it did recently when it was around $30, did that make it a value?

Index P/E's are relevant, IMO, but it depends how they are calculated.

You should look and see what the P/E's were for some of the financials this spring. They were also in the mid teens, but now they have no P in the P/E.