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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: lurqer who wrote (15286)12/4/2002 1:08:31 PM
From: David Howe  Read Replies (3) of 19219
 
<< Until we make a valuation low in the P/E 7 to 10 range >>

Completely off base. Interest rates are so low that PE ratios (on average) will not go to this level. No chance of it. Interest rates in the 70s were through the roof, that's why money stayed away from stocks. There was no reason to buy stocks when you could buy a 15% CD. That's why PE's went to that level back then. Today IS very different. PE's should be at historically high levels and rightfully so.

IMO,
Dave
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