I predict

[_nova]

I'm not a big fan of PE's since they're hindsight tools and forward PE's are just educated guessing ceteris paribus. But here's something to chew on: Oct 07 SPX PE = 20, Oct 08 SPX PE = 25.4, and as at Thu 6 Feb 09 = 29.1 PE. This shows the follow through effect of just how rapidly earnings are falling in the SPX and likely this figure is overshooting and will rebalance once the markets recover. Mark Hulbert smoothes this to a more realistic 14 which makes the SPX slightly undervalued. The PE average over time for the SPX is 15. However, according to Claus Vogt (see http://www.marketoracle.co.uk/Article8772.html) the PE of the SP 500 dropped to 7 during the recession of the mid-1970s, and it did it again in the recession of the early 1980s. If this is a precedent, then the SPX has a way to go yet and rallies are only short term plays

[JohnnyCash]

Agree, I think there's plenty of 30+ PE on the US exchange and dont think we have any heavyweight near that level, barring a couple of medical and food stocks?