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Technology Stocks : Semi Equipment Analysis

SOXX 302.84

+2.0%

Dec 2 4:00 PM EST

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To: Ian@SI who wrote (5957)	10/9/2002 9:52:24 AM
From: Return to Sender	Read Replies (1) of 95515

Is it possible that the S&P 500 is not outrageously overvalued now? Maybe... chartoftheday.com Even after a major 30-month decline in stock prices, the S&P 500 trades at a relatively high PE ratio of 29.8. Today's chart suggests that other factors, such as low inflation, help justify these valuations if only a little. To come up with today's chart, we took the S&P 500 earnings yield minus the 12-month inflation rate to get what is referred to as the real earnings yield. In theory, when the real earnings yield is high, stocks are undervalued and when the real earnings yield is low, stocks are considered overvalued. The real earnings yield currently stands at 2.1%. This suggests that for the first time in several years, stocks are not outright expensive. Stay tuned... Go to the link above to see the chart. Many thanks to Les Horowitz who posted this link first on the News and Charts Links Thread: Message 18090922 RtS

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