That proves absolutely nothing. INTC's market cap has been twice that of the entire MPU market for many years, and yet I still see it as a good value. You need better "facts" than that to prove we are in a bubble
Not before the bubble. Also they had 80% market share. I'm sure you'll think it's an awesome value at 8 bucks a share.
The "facts" are from the article:
Message 16170769
The Internet-telecom-tech bubble was the biggest by far in American history. Bigger than the railroads, bigger than anything. To put it in perspective, the S&P peaked at 21 times earnings in 1929. In 1965, in the other great cycle, the post-war cycle, it again peaked at 21 times earnings. Both cycles were built on incredibly strong earnings and productivity gains. In this cycle the index peaked at 33 times earnings, and as we sit here the S&P's P/E is at 26 times earnings.
So, how can you believe that there is going to be a permanent low at a P/E higher than the previous highs? There isn't much hope. My colleague Ben Inker has looked at every bubble for which we have data. His research goes back years and years and includes stocks, bonds, commodities and currencies. We found 28 bubbles. We define a bubble as a 40-year event in which statistics went well beyond the norm, a two-standard- deviation event. Every one of the 28 went back to trend, no exceptions, no new eras, not a single one that we can find in history. The broad U.S. market today is still in bubble territory at 26 times earnings.
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