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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (9835)	11/13/1999 12:59:00 PM
From: mister topes	Read Replies (1) \| Respond to of 15132

Actually Justa, Brinker did not say in Barrons "just under 25 times" period. He went on to say in the very next sentence in Barrons "This allows for modest multiple expansion in the event interest rates move lower and slower economic growth materializes." This clearly states that slower economic growth next year coupled with lower rates opens the door for the P/E to return to the area of the summer 1999 highpoint of 28 times. This would be modestly higher than 25. Seems like the language is appropriate, well chosen and clear as a bell. As you have noted, Brinker is not easily persuaded P/E ratios on the S&P 500 Index will rise dramatically higher than the twenties, but he has acknowledged the 28 times multiple (1418.78) of July 1999 based on estimated operating earnings for the current year. Now, of course, in November, these numbers can begin to apply to Year 2000 earnings, which investors are clearly in the process of doing now.