stock market is over-valued based on REAL PE

http://static.seekingalpha.com/uploads/2009/7/31/98115-124908344156108-John-Lounsbury_origin.png It is amazing that anyone would go long an equity market with a reported P/E multiple of 700x but that is indeed what we have on our hands. The end of the recession and the onset of a sustainable recovery, as we saw in 2002, are not the same thing. So this could still end badly but we will await... [more]

http://static.seekingalpha.com/uploads/2009/7/31/98115-124908344156108-John-Lounsbury_origin.png It is amazing that anyone would go long an equity market with a reported P/E multiple of 700x but that is indeed what we have on our hands. The end of the recession and the onset of a sustainable recovery, as we saw in 2002, are not the same thing. So this could still end badly but we will await confirmation signs that this is more than a very flashy bear market rally before shifting gears. REMAINDER OF ARTICLE.. http://seekingalpha.com/article/153038-1929-all-over-again?source=feed [less]