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.
Jeffrey C. Sica is the President and Chief Investment Officer of Sica Wealth Management, LLC (“SWM”), an SEC registered investment adviser that maintains a principal place of business in the State of New Jersey. The information presented herein may not be suitable for all investors, and no portion of this commentary is to be construed as a solicitation to buy or sell a security, or the rendering of personalized investment, tax or legal advice. Past performance does not guarantee future results, as there can be no assurance the views and opinions expressed herein will come to pass. Investing involves risk, including the potential loss of principal. Please consult a financial professional prior to investing.