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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 683.89+0.3%Dec 3 4:00 PM EST

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To: brunn who wrote (71379)3/6/2001 12:25:16 PM
From: jmootx  Read Replies (2) of 99985
 
Also on the 70's, why different today.

Remember besides inflation at 6-10%, interest rates at 10%, etc. etc. stocks were more components of dividends...yields needed to be 3-5%. The 1990's saw the demise of dividends, so the old PE standard is gone for good. Of course this bear will have to play itself out to see the bottom of the "oust the CEO, lay them all off, buy back stock, etc." culture in place today. I expect 15-18 PE's at this point.
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