RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:s&p futures are way downSteven1 wrote: It’s a potential bubble.
If earnings rebound in 2nd half 2016 and 2017 and there is also minor pull back, the PE will get back to low 20’s. No bubble
In 2000, the PE ratio hit 43, with the expectations that earnings would follow. This was bubble.
The financial sector mostly has low PE ratios.
Amazon is sitting at a PE Ratio of 300. Facebook at 70. Netflix at 340. If the tech sector doesn’t deliver, we could be looking at a major correction
Financial sector are in down trend this Q2 compared to last year Q2... (For the moment...)
But you true that Amazon, Facebook, Netflix and etc are way too speculative...
For me, a good PE for multinationals is 10, not 20, 20 might be good on a growing economy but our planet are mature, there wont be such a growth. Even from developping world... Maybe a PE 15 to 18 in good years but this year ? For sure, a growing business that take other's part on the market can be a PE way over 10 or 20 or 30 but in this state, it's a speculative investment...
In any way, current market is really weird, way too much euphorical, june data aren't exceptional (we had it like 6 month before...) but may's data was exeptional (First negative since 2010...).