Post
Topic
Board Economics
Re: Monday 8/8/2011 Judgement day for world stock market
by
BTC_Junkie
on 13/08/2011, 15:35:51 UTC

On a side note, P/E of financial stocks is so incredibly low now that they're the best buy of the 21st century


It depends what you think that "E" really is... if you think there's no double dip then you're correct.  However if there is a W shaped recovery then reduced earnings will likely show the current pricing more reasonable.


banks are far, FAR more capitalized than they were in the fall of 2008


US banks are certainly in better shape (except for BoA which is still questionable), but a lot of the current concern is with European banks.  The impact of EU Government bond "defaults" is still being determined, and creates a lot of uncertainty.