Corporate earnings in Brazil have gone up roughly as fast as stock prices. With the price earnings ratio remaining stable and moderate, the stock market boom does not appear to reflect merely investor psychology.

House price to income ratio, 1992 3.1

Since 1996, there has been a decrease in the ratio of female to male earnings.

The S amp P 500 price earnings ratio is gradually climbing back to its long term average of 16. Bank shares in particular are rebounding, and some banks have even succeeded in repaying at least part of their government provided capital.

The S P 500 price earnings ratio is gradually climbing back to its long term average of 16. Bank shares in particular are rebounding, and some banks have even succeeded in repaying at least part of their government provided capital.

It is surprising that America s stock market hasn t crashed yet, since all other indicators are pointing downward. The Standard ampamp Poor s price earnings ratio recently stood at around 20, well above the long term average of around 16 since 1881.

But it is only a matter of time until they fall, too. After all, the Standard ampamp Poor s US price earnings ratio is still above its long term average 26.84 in 2007, compared to its long term average since 1881 of 16.31.

The Shiller P E ratio based on average real (inflation adjusted) earnings from the last ten years is at 27.08, with a mean and median of 16.59 and 15.96, respectively. And, in February, the forward 12 month earnings P E ratio, which uses managers future earnings guidance, reached an 11 year high of 17.1, with the five and ten year averages standing at about 14 and the 15 year average at 16.

Finally, as Gyourko, Mayer, and Sinai themselves note, even these small long term differences in home price across cities have tended to be offset by lower rent price ratios in the superstar cities. For an investor, the rate of return is the sum of the rate of appreciation and the rent price ratio, so the low rent price ratio reduces the advantage of faster appreciation.

Thus, the expected fundamental real return on diversified US stock portfolios right now is in the range of 6 to 7 . The expected market return is that amount plus or minus expected changes in valuation ratios will stocks return more as price earnings ratios rise, or return less as price earnings ratios fall?

The ratio of a median free market price of a dwelling unit and the median annual household income is now 2.73.

This reaching for yield has driven up the prices of all long term bonds to unsustainable levels, narrowed credit spreads on corporate bonds and emerging market debt, raised the relative prices of commercial real estate, and pushed up the stock market s price earnings ratio to more than 25 higher than its historic average.

The S P 500 has rallied 150 since its 2009 lows, and valuations look rich given weakening growth dynamics (the Shiller price earnings ratio stands at 26, compared to 15 in 2009). Against this backdrop, the wealthiest Americans are unlikely to enjoy substantial further profits from their financial investments in the near term.

Since they have to pay for it, they may consider going where the quality price ratio is more favourable than at home.

It is, however, a matter for concern that the investment ratio appears to have fallen in more than half of the countries in which export earnings increased during 1993 1995.

40. In considering this element of the scale, the Committee had before it information obtained from the World Bank on debt stock, principal repayments, the ratio of debt to national income and the ratio of debt service to export earnings for a number of Member States.

On the contrary, the real question is why the increase in stock prices has not outpaced growth in corporate earnings. After all, in the 1990 s, the US stock market surge (as in many countries) was fueled by record high price earnings ratios.

Family earnings

Earnings related

The Expert Group agreed that such a coverage ratio would not be sufficient to collect sufficient data for use in the calculation of price indexes.

Slovenia has experienced a gradual improvement in the affordability of housing but the ratio of house price to household income is high at 7 1.

Additional earnings limit

Instability of earnings

That ratio in America would only cost a couple five years to earn, but in China it's 30 to 40 years with the skyrocketing real estate price.

That ratio in America would only cost a couple five years to earn, but in China it's 30 to 40 years with the skyrocketing real estate price.

Ratio

Ratio

Ratio

And with your earnings...

Staff ratio

Aspect ratio

Golden Ratio

Custom ratio

Aspect Ratio

Share Ratio

Share ratio

Ratio limit

Aspect Ratio

Golden ratio

Size ratio

Keep ratio

Golden Ratio

Keep Ratio

Keep ratio

No limit to additional earnings.