Cramer’s final thoughts for the year: Making sense of multiples
The price-to-earnings multiples say recession. But the multiples said similar things in 2022. So how long can the multiples stay this low? We have all read dozens of articles about what 2023 will bring us. I think most are sincere. Their only drawback, as usual, is that they don't touch on stocks themselves. They might say that the S & P 500 , currently trading at 18-times earnings, could trade down to 16-times earnings even if earnings stay relatively steady. Or, they could say that if the terminal rate is 5% on the…