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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (31762)6/7/2000 1:46:00 PM
From: Lee  Read Replies (3) of 50167
 
Hi Ike,..Re:.If we had an S&P 10 when fire was invented or S&P 20 when wheel was invented even the man from cave in the stone age would designate new premiums as the economy would have moved up to a higher gear.

I love your remarks. <g> It always bothers me when people insist on comparing current PE with historical PE. How is this comparable? How can we compare INTC PE with BS of the 1970's? In the '70s Bethlehem Steel was probably at the cutting edge of technology. <g>

Another problem when comparing current PEs with historical values is in the make-up of the S&P since different sectors are represented by different percentages over the years.

Great post, thanks.

Best,

Lee
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