Thursday , 21 September 2017


Stock Indices

Beware: Russell 2000’s True P/E Ratio Is 78.7, NOT the 20 to 26 Bandied About

stockcrash-2

The Russell 2000’s true P/E today is higher than it was at either the top of the internet bubble or the 2007 bull market peak. That’s important information in light of the Russell 2000 dropping below its 200-day moving average. Rather than providing a floor underneath the index, its true valuation will be exerting a force towards even more declines.

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The P/E Ratio: Its Strengths and Limitations

investing4

When it comes to valuing stocks, the price-to-earnings (P/E) ratio is the number one metric for investors that want an instant fix on what the market thinks of a company. [That being said]...there are health warnings to heed if you don’t want to be left exposed by its limitations. [Let me explain.] Words: 1101

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