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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.21+0.5%10:31 AM EST

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To: GVTucker who wrote (67028)2/11/2005 9:49:55 AM
From: RetiredNow  Read Replies (2) of 77400
 
Top decile. I don't buy it, unless you can post some proof. According to the graph I posted, PEs are back near historical averages. The average if I remember correctly is something like 17 over the last 50 years. I'll look around for a link.

Anyway, PEs taken in isolation don't tell you much. You need to look at it as it relates to bond rates, because money finds its way to the best returns. Unless we're in a new environment where both bonds and stock do poorly, I'd say we will have a correction of the imbalance to the upside in stocks and to the downside in bond prices.
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