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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    PE Ratio – Mania v Panic

    Lobo
    Lobo
    Lobo
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    Posts : 28411
    Join date : 2013-01-12
    • Post n°1

    PE Ratio – Mania v Panic Empty PE Ratio – Mania v Panic

    Post by Lobo Mon 07 Mar 2016, 1:59 pm

    PE Ratio – Mania v Panic PE-Ratio-2007-2016-1024x538
    QUESTION: 
    Hi Mr. Armstrong,
    Some of your readers, me included, wonder how the Dow is going to get to 23,000 or more, especially as we go through an economic slowdown. This would suggest a P/E of around 23 or higher. Is the common thinking that would accompany such a move similar to past manias (tulipmania, south sea bubble)? Is mania thinking also cyclical?
    Thanks as always,
    M
    ANSWER: With all due respect, you have to look at this, not as a mania of speculative fever, but as a panic in government with a collapse in confidence. That is when money just seeks safety; not profit. A mania is a speculative boom where profit is the motive. What we face is the opposite. When capital is just trying to break even, the P/E Ratio rises to historical highs. Above is the P/E Ratio on the S&P 500 since the 2007 high. It rose to over 120 during the crash. This is why we warned that the market would make new highs and while Barrons reported that forecast, they were probably doing so tongue-in-cheek.
    PE Ratio – Mania v Panic PE-Ratio-1871-2016-1024x496
    PE Ratio – Mania v Panic Ghost-BustersNotice that even looking at the annual average of the P/E Ratio in the S&P 5oo, the year 2009 is the historical high – SO FAR! Even the 2000 Dot.COM bubble produced an annual average of almost 50:1. That still did not compare to the 2009 Panic. When banks and government are in trouble and you are just trying to protect what you have, who you gonna call? This reminds me of the movie “Ghost Busters” with the theme song punch line – Who You Gonna Call?
    That is the difference between a collapse in confidence in government (public to private shift) and a speculative mania. When I say the Dow can go to 40,000 if it exceeds 23,000, this is not the speculative boom-type rally. It is a panic of how to preserve what you have. There is a huge difference.
    We have absolutely everything I could ever get my hands on from a data perspective in a computer that I taught TO ANALYZE. It comes back with very pointed and detailed analyses, of which 99% of humanity never bothered to check on. So open your mind. Leave the cage in which you live created by society to control and contain you. We are embarking on a new journey that will shake the foundations of reason.

     
     
    PE Ratio – Mania v Panic Dream
    First you Dream
    PE Ratio – Mania v Panic Idea
    Then an Idea Emerges from that Dream
    PE Ratio – Mania v Panic Imagine
    Then you Imagine How to Realize that Idea
    PE Ratio – Mania v Panic Create
    Then you Create that Idea
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