Profits to support the stock indexes

tuned2ride · 02-21-2010, 09:29 AM

I am trying to figure out if there are published ratios of value of common stock market indexes (Dow Jones, NASDAQ, S&P 500) and the profits generated by the companies that define them.

For the Dow Jones, it is probably easier to find because it is only 30 companies.
http://finance.yahoo.com/q/ta?s=^DJI

Maybe it is already in the indicators, but I can't find it in the help page.
http://help.yahoo.com/l/us/yah....html

Is this ratio available?

It appears to me that as long there are profits, those index will stand, otherwise...

GreenPlease · 02-21-2010, 11:07 AM

Are you talking just about profits in nominal terms or are you, perhaps, talking about the price of the market relative to profits(earnings)?

tuned2ride · 02-21-2010, 04:33 PM

I got my answer. I learnt that I was talking about the P/E ratio.

My opinion is that the market is still over-evaluated by 20-30%.

At current 20.42, you can't achieve a yield of 10% unless there is speculation, right?

02-21-2010, 09:29 AM	#1
tuned2ride Lieutenant 36 Rep 430 Posts Drives: E90, S5 SB, looking for a M340 Join Date: Jan 2010 Location: Hell iTrader: (0)	Profits to support the stock indexes I am trying to figure out if there are published ratios of value of common stock market indexes (Dow Jones, NASDAQ, S&P 500) and the profits generated by the companies that define them. For the Dow Jones, it is probably easier to find because it is only 30 companies. http://finance.yahoo.com/q/ta?s=^DJI Maybe it is already in the indicators, but I can't find it in the help page. http://help.yahoo.com/l/us/yah....html Is this ratio available? It appears to me that as long there are profits, those index will stand, otherwise...
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02-21-2010, 11:07 AM	#2
GreenPlease Lieutenant Colonel 146 Rep 1,629 Posts Drives: BMW 335i e92 Join Date: Feb 2008 Location: Orlando Florida iTrader: (2)	Are you talking just about profits in nominal terms or are you, perhaps, talking about the price of the market relative to profits(earnings)? __________________ Cars>Women
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02-21-2010, 04:33 PM	#3
tuned2ride Lieutenant 36 Rep 430 Posts Drives: E90, S5 SB, looking for a M340 Join Date: Jan 2010 Location: Hell iTrader: (0)	I got my answer. I learnt that I was talking about the P/E ratio. My opinion is that the market is still over-evaluated by 20-30%. At current 20.42, you can't achieve a yield of 10% unless there is speculation, right?
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