02-28-2020, 05:46 AM
Carnos Jax wrote:
Don’t worry about if it’ll drop further, as someone around here says, that’s like trying to catch a falling knife.
A “falling knife” is generally used as a caution not to jump into a stock or other asset during a drop.
Carnos Jax wrote: Point is we’re approaching historical lows.
Schiller P/E ratio for the S+P 500:
Even after the last 4 days, the Schiller index remains around twice as high as the long term average. In fact, there have only been two times before 2019 when the Schiller P/E ratio was higher than it ended Thursday afternoon - once around the end of the 90’s, before the dot-com crash, and...well...in 1929. Prior to the 2008 crash? Nope, not this high. Prior to Black Monday in ‘87, when the market lost over 22% of it’s value in a day? Not even close.
Anything can happen - perhaps we’ll go back to massively overpriced stocks. But I fear this is about more than a virus, and I’m not sure it’s done.