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Booming earnings finally bring key P/E ratios down, but they are still considerably extended

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DAVIS100 and S661A show P/E ratios have come down thanks to booming earnings, but they remain overvalued. Earnings are expected to boom higher, but that has not always been a good sign. It appears economists have finally stepped in line with the boom, as economic surprises, which had been positive, have turned more neutral. Brokers' customers are highly leveraged.

Ned Davis Research | NDR Hotline | Insights | 3X Weekly

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