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Strategies & Market Trends : Fidelity Select Sector funds

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To: Dennis who wrote (3654)4/14/2001 8:20:58 AM
From: Julius Wong  Read Replies (2) of 4916
 
Dennis:

You raised a good point. More people own stocks mean higher demand and higher PE.

Here is another view with a similar conclusion. There are several competing investment vehicles: stocks, bonds, gold, real estate. If stocks become more attractive than the other investment vehicles, than stocks should have higher PE than the historical PE.

Julius
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