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will rahal

Great charts!
If you subscribe to the notion(like I do) that we are in a secular bull market for commodities, then you have to expected P/E
contraction. I did some work that shows several time last centutry, when P/E contracted by two-thirds.They where all associated with rising commodities prices.
This study would suggest a P/E in the low teens for the S&P. See "Financial vs Tangible assets" (April archives)

will rahal

Here is the link fot the P/E analysis when
Commodities are increasing in prices:http://wrahal.blogspot.com/2007/04/financial-paper-vs-tangible-assets.html

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