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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 684.45+0.1%4:00 PM EST

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To: bumboo who wrote (71378)3/6/2001 12:12:02 PM
From: brunn  Read Replies (2) of 99985
 
In the 70's interest rates were over 10%. How many people would buy stocks at a high P/E in a bear market when you were guaranteed over 10% return in a CD? In other words, of course P/E's are higher now and will be until interest rates go higher. I am not saying that P/E's cannot go lower. I just feel that comparisons to the 70's are deceiving.
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