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Strategies & Market Trends : The Stock Market Bubble

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To: The Ox who wrote (3196)5/30/2000 10:35:00 PM
From: vampire  Read Replies (2) of 3339
 
I'm not sure why you think a <7,000 Dow is so absurd. I'm not sure what the P/E is on the Dow but I believe it's about 25 on the S & P. Th historical norm is closer to 15. Now take into account the fact that just as valuations become (and became) out of whack in a bull market, the same holds true in a bear market (the pendulum always swings too far) and you now see that we don't need any of the phenomenon that you mention to see a serious bear.
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