Charlie Buchwalter
The recent cataclysmic events in financial markets have jolted many of us into a “back to basics” mentality. Basics such as “what goes up must come down.” Basics such as “live within your means.”
Over the weekend, my colleague Dave Martin and I reviewed a 100 year trend of price/earnings ratios for the S&P 500. For the last 18 years or so, the average has driven far north of the long term average of 15, and a “back to basics” mentality would have indicated that sooner or later it would …