MB, re: The " New Era"
It seem's the phenomena is constrained to a small percentage of stocks, (mostly hi- tech), that have outrageous P/E's and Mkt Cap's.
According to a recent article in "Money", the stocks tracked by Value Line have a median P/E under 15, and the average Blue Chip in the SP500 is below 30. It also shows a chart where 60% of all stocks are lagging the SP500 this year.
I ran a "screen" on the Nasdaq site, (NYSE and Nasdaq), that shows there are 36 companies with a Cap >$100B, ($7Trillion+ total Cap for the 36 with an average of $196B). (I think there may be some anomalies in the screen, but I have to go with it). What percent of total mkt cap does this $7 Trillion equate to?
If you look at the "bubble" as being constrained to a small percentage of stocks, are there parallels to the bubbles of the past? (For example, '29 and Japan?) Were they this narrow?
(And do you look at the bubble as being constrained in this manner?)
When the BK hit's, (which all you guys have convinced me is only a matter of time), will it have broad implications, or be constrained to a small percentage of stocks?
TIA
Gene |
