Forward PEs look attractive?

Tim Farrelly | farrelly's Investment Strategy | 23 September 2013

The statement "Forward PEs look attractive" is often offered as an astute observation. In fact, it's almost a truism. Why? Because the perpetual, almost childlike optimism of analysts is such that the market almost always looks good based on next year's earnings forecast.

Recently, I reviewed a comparison of Wall Street analyst consensus S&P500 EPS growth forecasts versus actual results from 1995 to 2012. The findings were extraordinary, to say the least.