Profit Perspective
12/02/2013 | | Dow Jones, Dow jones inflation adjuster, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, P/E Ratio, politics and economics, Public speaking economist, trailing P/E Ratio
When the Dow Jones Industrial Average hits 16,220, it will hit a new inflation-adjusted all-time high. While the Dow is up 37% since its tech bubble high of 11,722.98 of 1/14/00, the CPI is up 38%. Of course, back in 2000 corporate profits were $482 billion while in 2012 corporate profits were almost $1.8 trillion. While the trailing P/E ratio is about 16.59, back then it was an astonishing 26.