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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: wooden ships who wrote (4628)4/16/1998 6:04:00 PM
From: Kirk ©  Read Replies (1) of 42834
 
Truman, interesting tid-bits re. p/e

Date Market Inflation Interest USSR
p/e e/p rate rate

1974 7 14.3 Nixon Controls These Strong

1984 14% 17% Evil Empire

1998 24 4.2 0-3% 6% Resembles
Chicago of
the 1930's

Also, my read on Jacobs, DaBrink, et. al. is the "mean" could be
going up due to new circumstances. Big money has been made (ala 33%
per yr returns) but there is still money to be made in the market
at maybe 7% per yr for the next 12 years with a few short bull runs
thrown in. Da market will keep going up as earnings go up with
inflation or better. Multiple expansion has little room until we
have a new inflection point equal to the fall of the USSR which
might be a cure for ageing which I predict we'll see in the next 50
yrs. (longer lifespans means more time for compounding thus more
value in investing.)

regards
Kirk (so shoot me for "new age thinking") out
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