If the economy is slowing down it’s not reflected in earnings estimates.

The most recent published earnings estimates by S&P show no meaningful slowdown in 2011 earnings estimates.  The value of the S&P 500 is up only 16% from December 2003.  Earnings for the S&P 500 are up 52% since 2003!  Ten year Treasury rates are down 28% in the same time frame.  Rising earnings and falling interest rates are supposed to lead to rising P/E multiples and rising stock prices.  Instead, forward 12 month P/E ratio today is down 30% from 2003.  The S&P 500 would be 37% higher today if it traded at the P/E of December 2003.  Jeb Terry, Sr. June 13, 2011

Source: Standard and Poors

Aberdeen Investment Management – a guide service for micro-cap technology investment

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