Why PE ratios are useless in finding a market bottom
My friend Savita Subramanian (BofA Merrill Lynch) says there are six things that usually occur at major bear market bottoms, and all six of them are there already or almost there. These range from earnings revisions to Fed moves to the financial stress indicator. One interesting point she makes is that there is a very wide range of PE ratios at or near stock market bottoms. The range is so wide, in fact, that using this m...
source https://thereformedbroker.com/2020/03/19/why-pe-ratios-are-useless-in-finding-a-market-bottom/
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source https://thereformedbroker.com/2020/03/19/why-pe-ratios-are-useless-in-finding-a-market-bottom/
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