JD,
Ever since the stock market broke out big time in 1986 stocks
have reached ever increasing valuations, presumably based on the
prospect of the globalization of the world economy.
Putting aside the internet companies, which are essentially a
crapshoot on which companies will ultimately survive, and
even if they do, whether they will actually produce the real earnings
necessary to justify even their current prices, the real question of interest to me is at what point are the established companies like:
Microsoft Corp, Genl Electric,Intel Corp, Wal-Mart Stores,
Cisco Systems, Lucent Technologies, Merck & Co, Citigroup Inc,
Exxon Corp, Intl Bus. Machines
so overvalued that their valuations have discounted their doing business with every breathing person and companies on the planet.
Are we there yet?
Vitas |
