Friday, February 4, 2011
Using Barron's Statistics
When I was young I used to read Barron’s from cover to cover each week. I loved the statistics at the back of each issue. I would always try to figure out how I could use them. Nowadays, I still look at Barron’s from time to time, but I like this page the most. It provides the SP500 earnings, which are currently $71.86. Trying to figure out the growth rate of these earnings, and what multiple the market will trade at, is a pretty good way to get an idea of the value of the market. I do not trade on this information, but I like to look at it as a reality check.