Steve, In the sense that the momentum stocks took on a bigger % of the indices, what you say is partially correct. However, the stocks that have gone up most have no earnings and many have no prospect of ever having earnings. But, stocks like Coke that haven't had eps growth in the past 3 years have still seen their pe ratios go up. Stocks like Intel, where eps went to hell in a handbasket last year, have seen their pe ratios go up quite a bit. Or IBM, which has had earnings growing at a t-Bill rate, has seen nearly a doubling of its pe ratio in the past 3 years. It is still nutburger time, though the stocks that have had growing, if phony, eps, have, for the most part, had even faster growing pe ratios.
MB |
