This is the insanity of the current market. For the PE ratio to come in at 20 for Q3 of 2009 and with estimated earnings of $14.57 per share, the S&P should have a value of 291.40. This is even less than that the 666 low reached in March. So why the rally? Because people believe we’ll be back to peak earnings again. And insiders seem to have a different opinion. Last week, insiders had 18 buys for $30 million while on the sell side some 131 sold for over $889 million. Maybe the insiders know something that the public doesn’t regarding the S&P casino?
http://www.mrswing.com/articles/S_amp_P_Over_Priced_With_of_Companies_Reporting_Q.html
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