RE: P/E RATIO 2023 & 202419 Apr 2023 21:58
@Equality, great post, kudos!
Someone actually willing to crunch the numbers and discuss them rather than the usual suspects telling us their opinion of future sp movements based on absolutely nothing. Its refreshing, well done.
I think your figures look realistic, my calculations were similar.
It all depends on what happens with the recession, imho....
So many people are coming off fixed rate mortgages this year, which means massive cuts to their budget. Discretionary spending will almost definitely take a hit, and holidays are a big part of that.
Everything is more expensive due to inflation (goods and services), but also car loans, mortgages, credit cards etc.
If you add job losses to this, then we really are in trouble.
Interest rates are not done rising yet.
I am a cash buyer for a house right now, and things are not selling, there is a real stand off betwen buyers/sellers. So I am waiting. More stagnation there too.
I reckon recession is nailed on, you can't tame inflation without it.
At least when the TUI RI is past you will have the results in a few weeks and get better updates from the company, and more realistic projections.
Then all you have to decide is if you think a recession will happen or not.
I see 2/3 years of stagflation, maybe more, I think the whole market is a bit toppy and not pricing that in as yet.
But I think there will be a bounce from a low of around £4.70/4.80 ish when the overhang clears. Any sharp drop here will take out stop losses and people will panic. The very people who are on here all day every day telling us it's the bottom, they are the panic sellers for sure. Oterwise they would not post and just sleep easy at night with their investments.