#15 - Financial Market Update for July 2009
In today's video from http://www.JasonHartman.com, review the Financial Market Update and Monetary Update for the United States. Learn the best types of properties investment during financial Armageddon. http://CreatingWealthPodcast.com
The recent stock market rally has inspired a rising tide of hope and optimism within the investor community. Evidence of this is seen in the gentle step-up in market values from the floor of their recent decline.
This optimism seems to be discounted into the Price to Earnings ratio of the S&P 500 Index as well, since the current price of $921.23 represents a P/E ratio of 31.2 times the next four quarters of forecasted earnings per share for the index. Since the historical valuation for this index is significantly below the current level, it stands to reason that the investor community collectively believes that the government initiatives will create a market recovery in the near term.
At the Financial Freedom Report, we are not yet convinced that the fundamentals of the market justify such an optimistic valuation.
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