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To: Arik T.G. who wrote (543)	5/23/1998 9:15:00 PM
From: FACTUAL	Read Replies (1) of 686

I thought this thread had died! Your perspective may be correct- that current PE ignores the very high profits currently enjoyed by companies. My point ( which is more of a possible explanation rather than a defense ) is that for some companies ( of which there are no hardware companies save CSCO and certainly not INTC ) eg MSFT AOL Coca-Cola etc, investors appear to be using a lower discount rate as they percieve their earnings to be of lower risk. There is another theory I would appreciate your comments on and that is based on there being no high margin business in Asia that is world class. This theory says that the Western world seems to have cornered the market on high margin business ( consumer brands, software, pharmaceuticals, financial services, etc) that buying emerging markets or Japan is more a bet on these markets being oversold rather than investment opportunity. That this is a trading opportunity. If that is the case and accepting your theory I guess we should all switch to insured money markets or short term municipals?

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