S&P 500? It could happen
Submitted by Randy on Wed, 11/12/2008 - 19:02.
Over the course of the year, analyst’s estimated earnings for the S&P 500 have been dropping steadily. Back in March, the average forecast called for earnings of $81.52 per share; and as of October 14th, that forecast had dropped by 41.5% to just $48.52.
If you assume for a moment that Bear markets tend to bottom with a PE of about 10, then that would imply that the S&P could see a bottom around 450-500 within the next year or two – assuming that the earnings forecast doesn’t continue to fall.
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