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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (10697)	2/17/2000 5:46:00 PM
From: NickSE	Read Replies (1) \| Respond to of 42523

..."Because the employment cost index does not capture some forms of compensation that employers have been using more extensively--for example, stock options, signing bonuses, and employee price discounts on in-store purchases--it has likely been understating the true size of workers' gains... ~~~and notice the lack of discussion on lofty P/E ratios~~~ ...At large firms, stock price gains about kept pace with expected earnings growth in 1999, and the S&P 500 one-year ahead earnings-price ratio fluctuated around the historically low level of 4 percent even as real interest rates rose. Meanwhile, the Nasdaq composite index's earnings-price ratio (using actual twelve-month trailing earnings) plummeted from an already-slim 1-1/4 percent to 1/2 percent, suggesting that investors are pricing in expectations of tremendous earnings growth at technology firms relative to historical norms... biz.yahoo.com