You’d think that after losing over half its value, the S&P 500 would be cheap. But you would be wrong, too, just by thinking that thought.

After falling 35% in 2008, US stocks are now trading at only 10.6 times forecast earnings, well below the historical average. But are they good value yet? Martin Hutchinson says it will depend on the sector and country. He picks the biggest bull and bear markets for 2009.

Treasury bonds are the asset of choice for nervous investors these days. But Greg Gunner Guenthner says the best time to buy stocks is when everyone’s back is turned. And with global price-to-earnings ratios falling sharply, Greg says there are some excellent opportunities out there for contrarians.

I’ve been begging analysts to get real and take off those rose-colored glasses for months now. Their unwarranted optimism has resulted in two incredibly wrong-headed predictions.