The Wall Street Journal – Is It Time to Scrap the Fusty Old P/E Ratio?

The Wall Street Journal
Is It Time to Scrap the Fusty Old P/E Ratio?
The Wall Street Journal – Weekend Investor, page B9
By Ben Levisohn
September 4-5, 2010
But broader economic factors are increasingly driving the stock market these days. Just look at the events of this week. On Aug. 30, the Dow Jones Industrial Average fell 1.4% after personal-income data came in weaker than expected. But on Sept. 1, it rose 2.5%, as the Institute for Supply Management’s factory index rose to a three-month high.
The upshot: Individual company valuations “are virtually irrelevant in today’s economic climate,” says Jeffrey C. Sica, president of Sica Wealth Management in Morristown, N.J., which manages about $1 billion.

Click here for the full article