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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%Jan 14 3:59 PM EST
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To: chomolungma who wrote (171701)10/22/2002 11:40:26 AM
From: GVTucker  Read Replies (1) of 186894
 
chomolungma, RE: Since most investors have very limited choices on where to invest their liquid assets, low-interest rates will result in high P/E's.

When your time horizon gets long, low interest rates have less and less impact on the valuation of stocks.

Yes, I know that this flies in the face of a bunch of Wall Street strategists, but the evidence weighs in my favor. Historically, low interest rate environments have been accompanies by very cheap PE multiples as often as they have been accompanies by rich multiples.

If you don't have the quarter to quarter performance expectation that most institutions have, then you're much better off just ignoring interest rates completely and valuing Intel based solely on how much the company earns and how fast it can grow those earnings.
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