PER P/E Ratio

[aedens]

Why? Because the others are fictions.

I agree BUT (a big BUT) Stock so called market IS a ONLY a FICTION, it's a HERD fiction where people ONLY think in term "Bargain, I buy"-"Benefice OR Risk, I sell", think about the value of a piece of paper.
This has absolutly NO SENSE, NO VALUE except in what the people think about the FUTURE.
It is NOT Rational in NO WAY.

Nothing to to with the value of a concrete thing (even buildings), which has a value because it exists.

You can't use future PE because the formula is a growth formula. Also, to project any given year means nothing.

Sure, you are right on a RATIONAL point of view. On the very very long term (but then aren't we all dead?) rational gets right, BUT
-a-man is NOT rational (stupid, yes, rational no) AND
-b- man likes (need?) to be part of the herd AND
-c- to be rational you need to know the rules BUT rules changes at every minute in the economical world....
so, on my point of view PAST doesn't mean ANYTHING, FUTURE is fully unknown and is a fiction, PRESENT is REAL, and the stock market is a PRESENT evaluation of the Herd EMOTION about the future (without forgetting that what is SAID by the media could be (or could generate?) the opposite of what people THINK, this is the success at some time of the so-called "contrarians").

Regards

PS there was some studies done on the FUTURE PER which give quite reasonnable results (in term of years) (better than PAST PER).
See, but in french the studies of Aglietta, for example, he is not alone, but this is the most complete study on the subject, sorry if it is in french.

Why? Because the others are fictions.

I agree BUT (a big BUT) Stock so called market IS a ONLY a FICTION, it's a HERD fiction where people ONLY think in term "Bargain, I buy"-"Benefice OR Risk, I sell", think about the value of a piece of paper.
This has absolutly NO SENSE, NO VALUE except in what the people think about the FUTURE.
It is NOT Rational in NO WAY.

Nothing to to with the value of a concrete thing (even buildings), which has a value because it exists.

You can't use future PE because the formula is a growth formula. Also, to project any given year means nothing.

Sure, you are right on a RATIONAL point of view. On the very very long term (but then aren't we all dead?) rational gets right, BUT
-a-man is NOT rational (stupid, yes, rational no) AND
-b- man likes (need?) to be part of the herd AND
-c- to be rational you need to know the rules BUT rules changes at every minute in the economical world....
so, on my point of view PAST doesn't mean ANYTHING, FUTURE is fully unknown and is a fiction, PRESENT is REAL, and the stock market is a PRESENT evaluation of the Herd EMOTION about the future (without forgetting that what is SAID by the media could be (or could generate?) the opposite of what people THINK, this is the success at some time of the so-called "contrarians").

Regards

PS there was some studies done on the FUTURE PER which give quite reasonnable results (in term of years) (better than PAST PER).
See, but in french the studies of Aglietta, for example, he is not alone, but this is the most complete study on the subject, sorry if it is in french.

Why? Because the others are fictions.

I agree BUT (a big BUT) Stock so called market IS a ONLY a FICTION, it's a HERD fiction where people ONLY think in term "Bargain, I buy"-"Benefice OR Risk, I sell", think about the value of a piece of paper.
This has absolutly NO SENSE, NO VALUE except in what the people think about the FUTURE.
It is NOT Rational in NO WAY.

Nothing to to with the value of a concrete thing (even buildings), which has a value because it exists.

You can't use future PE because the formula is a growth formula. Also, to project any given year means nothing.

Sure, you are right on a RATIONAL point of view. On the very very long term (but then aren't we all dead?) rational gets right, BUT
-a-man is NOT rational (stupid, yes, rational no) AND
-b- man likes (need?) to be part of the herd AND
-c- to be rational you need to know the rules BUT rules changes at every minute in the economical world....
so, on my point of view PAST doesn't mean ANYTHING, FUTURE is fully unknown and is a fiction, PRESENT is REAL, and the stock market is a PRESENT evaluation of the Herd EMOTION about the future (without forgetting that what is SAID by the media could be (or could generate?) the opposite of what people THINK, this is the success at some time of the so-called "contrarians").

Regards

PS there was some studies done on the FUTURE PER which give quite reasonnable results (in term of years) (better than PAST PER).
See, but in french the studies of Aglietta, for example, he is not alone, but this is the most complete study on the subject, sorry if it is in french.

Future Per
To sum it up define your Utility: http://en.wikipedia.org/wiki/Utility#Utility_of_money
To conclusion debased currency is root. Periodical citation I can forward to logical conclusion in consumer mindset or to say greshams law
http://en.wikipedia.org/wiki/Gresham%27s_law To me p/e is a running guess to utility -Mises- human action- valued according to their utiliy -page 121 millions of independant decisions. Also, in stress preference http://en.wikipedia.org/wiki/Cardinal_utility.

Wheat is worth X So X can be anything for wheat to survive?
And Joseph gathered up all the money that was found in the land of Egypt
and in the land of Canaan, for the grain which they bought; and Joseph
brought the money into Pharaoh’s house. So when the money failed in the
land of Egypt and in the land of Canaan, all the Egyptians came to Joseph
and said, “Give us bread, for why should we die in your presence? For the
money has failed” (Genesis 47:14-15).

Complication exist so Utility is context. So yes anything of utility as your point C. All business cycles theory need sound money.
I remember silver period, gold period, Fiat period caused dislocations so p/e perverted by endless input loops we know about. Complication exist so utility is context. So yes anything of utility as your point C

http://generationaldynamics.com/forum/v ... 1740#p3862
Cart before the horse how long? Ask where they never crap where they eat on Wall Street
So? How much Fiat was created 2x from last base and we ponder why 2x where discharged as we see?

[burt]

Why PER does NOT Work in itself.

Just a nice article, but I would like to add that if there were ONE good measure of the "Market" there wouldn't be ANY "Market", but the financial "Market" is NOT a Market , you buy and sell ONLY dreams...

http://pragcap.com/equity-valuations-ar ... -it-matter

and a question: Until now I do not understand what that theory on the PER has to do with a generational theory???
John, please explain, thank you.

[Morgan]

Price index (P/E) is the price of the stock divided by the earnings of the company. Most of the People are willing to pay higher p/e for a growth stock. When comparing companies P/Es you need to factor in growth comparisons, industry comparisons, and overall market comparisons. It wouldn't be smart to compare the p/e of a bank vs the p/e of a tech stock. They are quite different. You need to compare apples with apples and then compare apples to the market basket and not vice versa.

[Laustim]

At first there was resistance and could not draw gas through the clogged line, but after about 8 to 10 minutes there was a sudden release of pressure and fuel began to flow in the gas tank as cleared by the line connected. I was able to pump new gas freely back and forth from the fuel line at this point.