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  • The carnage continues. I do think it's a good time to start looking for smart buys (e.g. market cap near book value).

    Quoted: A late-day decline once again pushed the markets down sharply, with the Dow falling more than 500 points.

    • buggia - Oct 09 2008

      I was reading that the average PE in the S&P 500 is now 10, last year it was 30.

    • Chen - Oct 10 2008

      Well, the whole market's selling at a discount. OTOH, the current P/E may be 10, but once we get through the inevitable raft of lowered estimates and earning shortfalls, it may actually be higher.

    • kennykamada - Oct 10 2008

      Look at Price to cash flow. Most earnings on the books have exotic tricks. I would be careful. Mo is right, P/B is a better place to start. In fatc, there are some businesses trading 50% P/B.

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