A cut from Kaplans site...................
From the bottom in October 1990 until March 31, 1998, the Nasdaq Composite Index increased by 655% while the profits of the companies that make up the Nasdsaq rose by 114%. More startlingly, from January 31, 1995, through March 31, 1998, the Nasdaq soared 169% while earnings gained only 15%. Not counting Microsoft, Intel, and Cisco, the P/E on the Nasdaq was 90.7 as of the close of trading on Friday, April 24, 1998. [Thanks to Barron's cover story, April 27, 1998]. |
