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To: re3 who wrote (101074)	4/15/2000 7:08:00 PM
From: Victor Lazlo	Read Replies (1) \| Respond to of 164684

<<On April 3rd, the Nasdaq sported a P/E ratio of 208 per acclaimed market analyst, James Stack. In the event market sell forces continue, causing the Nasdaq to fall 90% from its 04/03/00 value (about 4500), its P/E ratio will still be a very hefty 21 times. I say 'hefty,' based on historical precedent. >> << At the very peak of the 1929 Bull Market, the Dow sported a P/E of about 18 times. In the next 6 decades the Dow's average P/E ratio in bull markets was a respectable 14-16 times. >> What historical precedent?! The NASDAQ only began in the 1970's, and was not much of a force for a number of years after that, and he's using the 1920's DOW to evaluate it? That's idiotic. Victor