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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: PerryA who wrote (23958)8/27/1999 6:23:00 AM
From: Elroy Jetson  Respond to of 99985
 
A typical p/e ratio for the S&P during a bear market is 8x, so a median p/e of 18x is high by comparison.. let alone a mean p/e of 27x.

The Bull market of the 1960s saw S&P mean p/e ratios of 18x. I suspect the divergence between the median and mean was smaller as the "nifty 50" back then only had p/e ratios of 70x or so. I don't think this market is any more over-valued than it was then. Both good times to sell.