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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (73220)	9/12/2000 9:14:49 PM
From: ItsAllCyclical	Respond to of 95453

At the turn of the century - 100 years ago - you could buy a barrel of oil for about $1. The Dow was about 60. As recently as 15 years ago, that ratio was still about right. The Dow was about 60 times the price of oil. But then, the Dow took off...and oil collapsed. Early last year, the ratio of the price of oil to the Dow was close to 1 to 1,000. And now that the price of oil has more than doubled, you can buy the Dow for roughly 275 barrels of oil. egroups.com ------------------------------------------------- Interesting reading. It's from a gold thread, but contains a few great tidbits on oil and the markets. Don't know if anyone's ever heard of the q-ratio. It's basically a company's market cap divided by the book value. On a company basis it isn't too meaningful a gauge for overvalued/undervalued, but taken as whole and applied to the overall market I think it's an interesting gauge. Anyway saw of chart of the q-ratio recently going back 100+ years on another gold thread on SI. Pretty interesting that peaks are shown in 1929 and 1968 and today. Today's peak is higher than either of the other two. Food for thought.