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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (72734)	1/3/2000 3:06:00 PM
From: oilbabe	Read Replies (1) \| Respond to of 132070

Well, whoever recommended vitamins.com, thank you. I got my package today, and true to their promise my order of $26.31 is billed at $1.31....Now that's e-commerce for ya!! My son in college will do his order now too...

To: Mike M2 who wrote (72734)	1/3/2000 3:43:00 PM
From: gnuman	Read Replies (4) \| Respond to of 132070

Mike, re: 2nd Bullet ? Valuations. The market valuations are the highest ever. Higher than the peak in 1929 and 1972. Both markets were followed by horrific bear markets that wiped out 50% or more of shareholder value. Valuations tend to have a very predictable cycle. After being very high, they tend to swing to extreme lows. Currently the market is trading at about 35x earnings. Historically it trades about 13x, with the lows around 5x. To go from 35 times earnings to even 13x means a decline of over 60%. But that is not the end of it. The recoveries can take years, even decades. Even the best of names get caught up in these declines and suffer with the market. Do averages have as much meaning in this market? How badly are they skewed by the dot.coms and infrastructure co's? If you threw out the Naz100 what would the average P/E be? Do you know what the MEAN P/E of the market is? Does the "New Era" exist in only a small percentage of stocks? A lot of questions, but maybe you can help this confused investor. <g>