A big margin call
Posted by Frugal on October 6th, 2008
By the way markets are trading, it seems that some hedge funds are being liquidated. Markets seem to be trading at great depression level. It is incredible that energy stocks are trading at such low levels.
The canadian trusts (PGH, HTE, ERF, PWE) are trading at about 20% dividend yields. The MLPs stocks (EPD, PAA, MMP, FMO) are trading at about 10% dividend yields. The forward P/Es for many big energy stocks (XLE,OIH) and ETFs are at probably less than 6. This trades like a Great Depression is here.
Sooner or later, the markets should bounce back with a V bottom I believe. I can’t really believe that these stocks can ever be traded at such low valuation. But certainly, it can get cheaper by hours.
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October 6th, 2008 at 7:23 am
A P/E of 25 on the S&P 500 is not a low valuation at all. Call me when it’s single digit.
October 6th, 2008 at 7:31 am
Ring Ring. The p/e on the SPX is not anywhere near 25. I am getting hurt by this market though.