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

To: Craig Richards who wrote (25227)	9/8/1999 2:06:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

Craig, i admit you have a point there...however, this doesn't change the fact that p/e expansion has vastly outpaced earnings growth in recent years and this is especially true of the tech sector. a more meaningful way of looking at this may be to single out the big cap tech names like MSFT,INTC,LU,CSCO, etc. and look at hoe their p/e expansion in recent years compares to their earnings growth over the same time span. without being able to quote exact figures, i think it is no stretch to assert that the current p/e's of these companies are extremely lofty. it is highly unusual to find such high p/e's at this point of the economic cycle. in a recession, yes. anyway, eventually valuations will adjust to fundamentals, they always do in the long run. btw, thanks for posting these interesting statistics...20 companies with p/e's>1000? presumably the mania darlings... regards, hb

To: Craig Richards who wrote (25227)	9/8/1999 2:09:00 PM
From: Follies	Read Replies (1) \| Respond to of 99985

, I think the "average P/E = 140" statistic you referred to is not meaningful. I agree, the median may be an improvement, but I think the best measurement would be the total of all the market caps divided by all the total of all the earnings. Anyone have that info??