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Politics : Formerly About Applied Materials
AMAT 235.24+4.5%Nov 19 3:59 PM EST

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To: Ramsey Su who wrote (21878)7/16/1998 11:54:00 AM
From: 16yearcycle  Read Replies (2) of 70976
 
"Are we going to see S&P 500 hitting a PE of 40 or higher?"

I'd give it a 3 out of 4 possibility.

We have the enormous demographic push that our market is getting here.
In Japan, citizens are pouring money into savings accounts, hundreds of billions in dollars, that yield a net of 5-7% IN 5 YEARS. Waddya think: maybe they would prefer to join us over here, by investing via Mitsui Trust and getting a vastly better return? Gee, they might.

I am personally sure that this will get progressively more out of control, and only the fed can slow it down with a a series of hikes. The problem they have is that it can't be done yet. But wait 'till Asia stabilizes! It will be fast and furious then, a superb move that will prevent a bigger bubble from bursting later, and drive foreign money back home for awhile.
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