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Pastimes : Ask Mohan about the Market

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To: John Hunt who wrote (8013)11/15/1997 12:48:00 PM
From: studdog  Read Replies (2) of 18056
 
My small brain is in overdrive trying to make sense of the wild gyrations, so I have an addendum to my already too long post.(too much coffee)

The market is at extremely high historic valuations as far as PE, and book value goes. However, if you buy into the increase in productivity theory, these valuations can be justified because "companies can do more (make more money) with less (less workers, lower overhead)"

Karl
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