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Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%3:59 PM EST

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To: chomolungma who wrote (174151)4/17/2003 11:16:28 AM
From: GVTucker  Read Replies (1) of 186894
 
There is a relationship between inflation, interest rates and P/E ratios. The coming decade will be one of low inflation and to expect P/Es below 10 or even 15 is, IMO, unrealistic.

It depends on where GDP is. If low inflation is accompanied by poor economic growth, then P/Es can easily be that low. If economic growth is high and inflation low, then you're right, it is unrealistic.

Additoinally, I would say that predicting inflation for the coming decade is right near impossible.
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