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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Jill who wrote (1099)8/21/2001 9:46:00 PM
From: bowledover   of 8752
 
<< One inference from this terminological vogue the Journal draws: With earnings
defined correctly, the stock market actually has a much
higher price-to-earnings ratio than is generally thought,
suggesting that it "is further from recovery than many
suppose." >>

I found this interesting in a way. Recently I've heard and read a few commentators say that PE ratios are not good guides any more, too many accounting irregularities, really the opposite of what the article suggests. Also, yesterday or this am. on CNBC I heard someone say PE's are essentially irrelevant because they don't take into account interest rates, and, when one does, the calculation becomes 'dynamic' or foreward looking and current PE are way too high.

David
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