Wednesday, July 15, 2009

Sector P/E Ratios

Below we provide charts of historical P/E ratios (trailing 12-month before extraordinary items) for the S&P 500 and its ten sectors. After getting under 10 briefly in early March, the S&P 500's P/E currently stands at 14.37. On the day of the Lehman Brothers collapse, the index's P/E was at 15.94.

The Financial sector is the only one that currently has a negative P/E. Consumer Discretionary did have the highest P/E when General Motors was still in the sector, but when it got pulled out, the sector's P/E dropped and is currently the second highest behind Technology. Energy has the lowest P/E ratio at 7.81, followed by Telecom (9.83), and Industrials (9.96).


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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.