In this market, and this economy, old paradigms like this are no longer valid.
What is the standard PE for a stock when you do research? You look for the baseline of a P/E of 20. If its below, and all other fundamentals look good, then there is a good chance of growth.
If its over 20... with the same fundamentals, then there is a lesser chance of making a decent profit.
Changing fundamentals of course change the scope, but still, a P/E of 20 is the baseline.
Guess what?
The current P/E average for all stocks on the S&P is...
120 :O
Thats NOT basing your buying on fundamentals, growth, sales etc... that is PURE speculation of the BUBBLE nature.
Who in the their RIGHT MINDS would buy AIG or C? But if they had at the low they would have quadrupled their coin.
Nearly all trading is being done by the Big 6 brokers, and a GOOD 60-75% is done by GS's neat little computer matrix where they can SEE trades microseconds before they hit the NYSE and throw in trades accordingly.
(Thats why that Russian who STOLE GS's program was such a big deal earlier this year)
Retail is STILL on the sidelines... because NO ONE SMART wants to start getting in when GS and the PPT can steal your money through manipulation in a second.
Personally, I think 'green' is a HUGE scam. Its meant to destroy the middle class, to bring ALL industry and assets under the 9 banks set to be around after the others crash, and Real Estate folds, and its simply a govt and banking way of a money grab.
China and India BOTH just pulled out of the Copenhagen summit. Any FOOL nation who signs those accords are simply slitting their own wrists.