If you think PEof 20 was high two years ago, then why do you think PE of 70 is high today ? There is no universal standard about what number is high PE ( or too high) or low PE, all depends upon the sentiment of investors. In a very depressed market when everyone wants to dump, even 10 is a high PE. It also depends on what industry you are looking at, such as the banking industry, even 20 is counted as high PE. Just like the price of housing, back in 1960s, $100k is counted as very high for a 1500 sq ft single fmily house; but today, $100k you can not even buy an
one bed room apartment in SF.
Looking at today's environment, even an average PE of 80 maybe low, thinking that
there are almost no competitors for US high Tech companies in the world stage , technically speaking, the US high tech companies hold a monopoly positions in the
world market, and that the world is getting into a turning point from low productivity to high productivity propelled by technology. If you miss the big pictures of the world, today's world is completely different than what you were in 30 years ago, you may also miss the big high tide ( up trend) of the US high tech stocks in the coming years. |
