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Saturday, August 20, 2011

Inv: S&P500 fair value is 30% above current level?

http://www.fundsupermart.com/main/research/viewHTML.tpl?articleNo=5503

"Even if growth stalls in the second half of 2011 and revenue growth is muted in both 2012 and 2013, S&P 500 earnings can still be at all-time highs by end 2012.

Even after revising down earnings estimates on slowing economic growth, we see fair value (at the end of 2012) for the S&P 500 at 1565 points, a hefty 30% above current levels."

I don't know. But I know sometimes stocks drop 50%, revenue / profit of companies not drop 50% at all, far less than that.

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