Bear Trap or Market Rally??November 24th, 2008 | No Comments | Posted in Business, Business and Economic Expansion, wall street
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DJIA up 304 points. Whoo Hoo! Good to have something to cheer about. Don’t throw caution to the winds, this could just be a bear market rally. That being said, the Dow Industrials’ P/E has declined form 45.77 ( year ago), to 16.85 as of 11/21/08 and the 12 mo. forward estimate is 8.95 with a dividend yield of 4.03%.**
These have historically been levels at which bear markets tend to stabilize and where the conditions that set up the next bull market materialize.
~~John Cronin~~
**Sources: Birinyi Associates, WSJ Market Data Group
Tags: Stock Market Rally