I’ve posted Entry #27 to my weekly Investing: The New Rules column at the Death by 1,000 Papercuts site. It’s called Predicting Presidential Success Using the P/E10 Valuation Metric.
Juicy Excerpt: My view is that even the next president (Governor Palin!) should be worried about the prospect of the P/E10 level remaining low for a good number of years. We are now in a situation comparable to that which prevailed when Carter assumed office. Not enough time has passed for the P/E10 level to begin to work its way back up permanently. The P/E10 indicator suggests that Obama is in deep waters and that the next president is likely going to experience several years of economic bad times before even the best policy choices will be able to turn things around.