# P/E Ratios—LOOKING GOOD

There was an interesting observation made by Jack Hough of Barron's on FBN. Said he, " Of the S & P 500 stocks, 1/5 of them have P/E ratios in the single digits.

That's 20%. And there are many more just above this.

What does Single Digits mean? In a macro sense it means companies are doing well.

Here's my cabdriver's take. The P/E ratio is a formula that says how much you'll pay for $1 of Earnings. I.e., if the ratio is 8, it means that no matter the price of the stock, each dollar of earnings costs you $8. That's a great number.

Our economy is robust. Many opportunities.