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Prices measured using the Case-Shiller national index have fallen enough to make houses there look underpriced.
More than 100 companies in the Standard & Poor's 500-stock index have fallen 30percentt or more from their 52-week highs, according to Morgan Stanley Dean Witter.
Almost half of the firms in the supposedly top-notch Nemax 50 index have fallen by more than 90% from their peaks.
According to Bloomberg, 483 of the 500 constituents of the S&P 500 index have fallen in price so far this year.Related items Citigroup: A supertanker in troubleNov 20th 2008 Managing in the downturn: Desperately seeking a cash cureNov 20th 2008 Debt and deflation: Depressing timesNov 13th 2008The latest weakness seems to have been triggered by three main factors.
Andrew Lapthorne of SocGen points out that the trailing earnings of companies in the MSCI World index have fallen 5.5% in dollar terms over the last 12 months, and estimates of 2015 earnings have been cut by 10% since the start of the year (see top chart).
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The index has fallen 1.6 percent from a year ago.
Since July 1, the index has fallen 44percentt.
The index had fallen to 93.0 in April.
The index has fallen 10.6percentt in five weeks.
The Standard & Poor's 500-stock index had fallen 11.6percentto to 965.80.
Since then, the national index has fallen in every quarter.
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