BA

A good industry for tough times

This market has been tough; there is no doubt about that. By all estimates (and actual numbers), corporate earnings have continued to improve quarter by quarter since the bottom in March of 2009. Earnings for the 1st quarter of 2009 came in at $7.52, while the most recent quarter earnings for the S&P 500 came in over $22 on the quarter. Those numbers are 3 times higher they were at the bottom in 2009. The P/E (if you multiple the quarter by 4 (4 x 7.52 = 30.08) and then divide it by the S&P 500 level at the time, around 666) back in March of 2009 came in around 22.14. The recent quarter came in above $22, say $22.20 and the market now trades at a 13.21 P/E. The stock market is much more attractive now that it was two years ago…at least on a valuation basis....