The Fed And P/e

[JAMESBJOHNSON]

With the FED pumping cash into Wall Street, so the players can continue to swap stocks and keep the game going, at what point are the P/E ratios stretched so thin the stocks aren't worth buying? I mean, at some point there's more profit collecting soda cans for redemption. Then what? Does the market crash in the Mother of all Depressions?

There was a time when the price of a share of common stock was worth 16 times its dividend or 6 1/4% return on investment. I've seen plenty of stocks with fractional returns.

 

[JohnnySavage]

With the FED pumping cash into Wall Street, so the players can continue to swap stocks and keep the game going, at what point are the P/E ratios stretched so thin the stocks aren't worth buying? I mean, at some point there's more profit collecting soda cans for redemption. Then what? Does the market crash in the Mother of all Depressions?

There was a time when the price of a share of common stock was worth 16 times its dividend or 6 1/4% return on investment. I've seen plenty of stocks with fractional returns.