Ask Colin

I have recently seen a chart, I believe in The Australian, showing company profits versus the ASX 200. The chart had a base index of 100 as at March 1990. Is it possible for a user to construct this chart in Insight trader? How or where would company profits be obtained in Insight Trader or MetaStock format?

I am not aware of where you could get this data. However, it would not be very difficult to chart a proxy for it. Assuming you have two data series in addition to the ASX 200 price index - the ASX All Ordinaries price index and the ASX All Ordinaries PE ratio, you can put them in a spreadsheet. You can then manipulate them so that you have an earnings number (100/PE x P = E).

 

Then you can import the data into Insight Trader and plot both the ASX 200 price index and the Earnings number rebased to 100 at any date you choose in the data series. The two charts can then be overlaid and you have what I imagine you saw in the newspaper.

 

Keyword: