Earning Season Numbers ...

Old_Skeet

From review of the below linked article, by my math, the S&P 500 Index is selling on a Forward P/E Ratio of 13.2 and a Trailing P/E Ratio of 15.0. I have lnked the blurb for your reading enjoyment.

http://www.crossingwallstreet.com/archives/2013/01/earnings-season-numbers.html

I was wondering how the posters on the board view the Index? At its current level (1485) is it a buy, a hold or a sell?

I currently have it rated as a hold. Although by the P/E Ratio numbers it is not overvalued from my thoughts ... but, we are presently at, or near, new 52 week highs and what is most concerning to me is the soon to begin debt ceiling debates. So how do you rate it?

Good Investing,
Skeeter

An Addendium: Near term, I am awaiting for a pull back before I add to my equity allocation to somewhere around S&P 500 @ 1400 range. That would be about a Trailing P/E Ratio of 14.1 to 14.2 range and a Forward P/E Ratio of about 12.4. Should equities continue their run, I will most likely will trim my equity ballast position back based upon high valuation.

scott

I'm not selling anything (am mostly invested), but am not adding, either, and will continue to look for better entry points to add some here-and-there to specific names and/or broader funds.

I continue to look for appealing long-term specific names that provide at least a reasonable yield. Just really less and less interested in trading and am mainly focused on names that I could see holding for as long as 3-5 years.

I think the market can certainly continue higher if fund inflows really start to pick up, but I wouldn't chase that and am happy to wait for things to cool off, possibly due to debt ceiling debates or other issues.

Investor

Bespoke says 79.6% of stocks are overbought:

http://www.bespokeinvest.com/thinkbig/2013/1/22/796-of-sp-500-stocks-overbought.html

And here are sector trading range charts:

http://www.bespokeinvest.com/thinkbig/2013/1/21/bespokes-sector-trading-range-charts.html

Having said that it can go a lot higher if bond to stock rotation is to take place at full swing. Besides earnings are not bad overall:

http://www.bespokeinvest.com/thinkbig/2013/1/18/top-line-numbers-coming-in-strong.html

And I agree that forward P/E ratio is pretty modest.

Old_Skeet

Hi Investor,

Thanks for linking the bespoke information. Indeed that is good stuff and although I have seen this before it is something I had just moved away form. Good to see it again.

Thanks again,
Skeeter