Chart of the day

Today?s chart illustrates that the recent growth in earnings has led to a significantly lower PE ratio. While the PE ratio has been within the confines of a tight and very steep downtrend it is worth noting that the PE ratio has recently edged above this downtrend. Regardless, even though the significant earnings growth of late is a plus, the market has not been willing to pay what it has over the past decade for each dollar of earnings.