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

To: Mike M2 who wrote (73656)	1/14/2000 10:26:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

Mike, Wrong. Companies report earning in nominal dollars. Consider a country where inflation is 5000%, where a certain company reports 4000% earnings gain YoY. Would you rush in to invest in that company? Given that, if you adjust company earnings by the prevalent inflation rate, you will find that difference between the ratio of the average real earnings growth to the PE in the early 80's and that at present is much smaller than what the popular press claims. Oops! I just forgot that the USA is going to massive inflation at present. <VBG> -BGR.