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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 24.74-2.6%Dec 12 9:30 AM EST
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To: MeDroogies who wrote (2323)11/21/2002 4:08:04 PM
From: Oeconomicus  Read Replies (3) of 4345
 
You can't have 8% growth forever. Eventually, you'd be the entire GDP.

In theory, you are correct, but sales growth, which is conceptually more akin to GDP, and earnings growth, more of a driver of valuations, are not necessarily equal, even over long periods. Though I don't have exact figures, earnings on the S&P 500 have grown by about 7% p.a. since 1934 (the end of the early '30s earnings trough, before a sharp recovery in profits).

Bob
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