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

To: Dalin who wrote (30933)	5/3/2000 5:50:00 PM
From: Zach E.	Read Replies (1) \| Respond to of 42523

Dalin, You are correct that P/E's in general have gone up a lot in the past 5 years or so. Still, although the 31 that CSCO traded at was maybe 2 times that of the S&P 500, while now its multiple is closer to 6 times the S&P. Also, all of these companies that have shown great growth in the past will have slower growth in the future (law of large numbers). This would argue for P/E multiple contraction rather than expansion. Zach