S&P 500 and DJ indices update - 20090330

This is a follow up on the previous posts back in 2008:

• S&P 500 and DJ indices update - 20081031
• S&p 500 and DJ indices update

What I said back in November 2008 is still basically valid, expect that after the major collapse in the markets, markets are still overvalued, but to a lesser extend than at that time. Back then I said:

There isn't much to say except that the expected massive rally in the $ and the markets happened, and led to a massive overvaluation of the US markets in both absolute terms (in $ terms and PER terms) as in relative terms, compared to the European shares and Gold:
[...]

• The Dow [...] is over-performing the French index by a massive 18%!
• The S&P 500 shows the same trend, but with a lower over-valuation.
• The short US equities - long European ones trade seems more and more appealing. [...]
  

Today, the overvaluation remains about the same if you count in €-terms: the Dow decline is about 18% less than the CAC40 and the S&P 500 about 15% less. Given the state of the economy in the US and the hundreds of billions of losses by the companies in the US, it's still amazing to see that the French index has declined far more than the US one.