With last nights sell off in US stocks (-4.7%) the trailing 52 week P|E ratio for the S&P 500 is 9.86 against its long run average of around 15. The Dow is in similar territory.
Does this mean the bottom is near or has been touched? No one knows and no one rings a bell. The NZ 52 week trailing P|E is 12.75 offering contrary evidence – it may not be there tonight of course.
Two standard deviations covers the present levels in all of these markets so there may be room for further south…… what is clear though is that this level of re pricing is likely to offer long term buyers something to think about.