There's life but not as we know it..

This is what we know:

1. Greece, Spain, Italy & Portugal are at or on the 'brink' of financial collapse.
2. The Federal Reserve's $600 billion stimulus program is almost at an end.
3. China has raised its interest rates it an effort to curb spending.
4. GDP predictions have been cut from 3.2% to 2.6%

As a result the S&P 500 has erased this year's gains.

What you might not know:

1. The Standard & Poor 500 average price to earnings over the last 20 years is 20.
2. The current average S&P 500 price to (last year's) earnings is 15.
3. Ave. S&P price to book currently is 2.1 or lower than it has traded 90% of the time since the early nineties.
4. Ave. forecast growth for 2011 earnings on the S&P 500 is somewhere between 16 - 18%.

You could say that equity valuations for companies listed on the Standard & Poor's 500 index are cheap... In fact, the valuations are at levels last seen some 25 years ago.