| Ook: price-to-earnings ratio. |
Heart-Stopping Fall, Breathtaking Rally - Given all these challenges, skeptics worry that the breathtaking rally — the S.& P. 500 index has surged 66 percent since March — has made stocks too expensive. The 10-year price-to-earnings ratio of the S.& P. 500, a measure of how expensive stocks are relative to profits, was more than 20.3 in late December, up from 13.3 in March. The average for the last 130 years is 16.4, according to calculations by Robert J. Shiller, the Yale economist.
Bron: NYtines.com - 31-12-2009.