Earnings season begins with S&P PER at 140

For three months in a row now, the PER of the S&P 500 has been hovering about 140, levels never seen before in history.

And for three months in a row, unemployment has been rising, credit defaults as well, consumer credit has been contracting and deflation biting the debtors.

This evening Alcoa kick started the earnings season, and announced a profit ($77 million or $0.08 per share) where analysts were expecting a loss of $0.09 per share. And the profits are due to cost cutting (I haven't read the earnings report, but I'm guessing: accounting gimmicks).
Alcoa shares are up 8% in the after market, at $15.00. So even if those earnings were real, and sustained for 4 quarters, you would have an EPS of $0.32, which means that Alcoa would be valued 47 times its earnings...

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