Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mike Harkness who wrote (47741)	4/23/2000 2:45:00 AM
From: Square_Dealings	Read Replies (3) \| Respond to of 99985

<<I read in IBD that the Dow has a PE of 22. Is this excessive? The historical norm is 14 or so I believe and it got to a low of 8 at the 74 bottom. Any comments appreciated.>> The problem is history has little relavance to the baby boom generation which has placed a higher valuation on stocks. Never before has there been so many consumers on the planet. The old timers dont know how to factor this into the "valuation" model and are using the case of high PE ratios to support the idea that stocks should be valued lower. At one time 16 MB computers cost about $4000+ too. They don't know how to deal with technology because they dont understand it. Who says that the traditional Price to Earnings model is what should be used for all time? The world has changed but some refuse to believe it. M.