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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 685.69+0.2%Dec 5 4:00 PM EST

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To: Doug who wrote (74385)4/6/2001 5:23:02 PM
From: Math Junkie  Read Replies (1) of 99985
 
The difference between the four-year chart and the five-year chart is that the former shows far less outperformance by the Soxx than the five-year one. My point is that price history cannot tell you whether one index is overvalued relative to another. I agree with you that PSR shows that semis are overvalued relative to past downturns. What I am questioning is the claim that they are more overvalued than the Nasdaq.
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