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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (36229)1/8/2001 11:17:30 AM
From: JDinBaltimore  Read Replies (1) of 50167
 
Ike, the problem with PEG is that P/E and any derivative thereof; is/are trailing indicators. Meaning that they are only tell a story after the damage has been done. Historic P/E range of INDU pre 95 and going back to 1929 using a smoothing average, and removing aberrations of 1929, 1987 yield avg. range over that time of 12-19, with a constant yield growth rate of 7.87% which your 24 and 8 example are comming upon. Granted this is useless information, but it has a track record of 65 years! why deviate now. P/E pre 29 where higher on a normilization basis then, than they were on COMPX, but they held true to form from 40's thru 80's @ 12-19.
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