Re: 2011 - Predictions ( Financial )
Posted: Mon Jan 17, 2011 9:42 am
This bit from CNCB:-
This is only the 22nd month of a bull run (fr March 2009). The average bull run since WWII is 38 months. If history repeats itself, there is more upside to go in 2011.
Duncan W. Richardson, chief equity investment officer at Eaton Vance, says that while there is a fundamental relationship between inflation and stock market valuations, current levels of inflation are so low that there is no reason to panic. “As long as inflation still hovers in the 1 to 3 percent range, that’s actually a good time for P/E multiples,†he said.
Indeed, since 1871, the market’s P/E has hovered between 17 and 18, on average, in periods when inflation has grown at an annual rate of 1 to 3 percent. That’s well above the current P/E of about 13.
This is only the 22nd month of a bull run (fr March 2009). The average bull run since WWII is 38 months. If history repeats itself, there is more upside to go in 2011.