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To: Petz who wrote (29849)	3/1/2001 12:21:29 PM
From: that_crazy_doug	Respond to of 275872

<< 164x earnings. After a week of carnage maybe its 140 now, but here's the full quote from the story kash posted: ( 206.253.217.10 ) "The Nasdaq-100 is now trading for 164 times earnings. Just five years ago, it was selling for just 23 times earnings. To get back to those levels, it would have to fall close to 85%." >> This seems unlikely since 5 years ago the nasdaq 100 was about 1/3rd it's current value which would mean that if earnings remained constant over the 5 year period, we'd be at a pe of 69, and thus for us to be at a pe of 164 earnings would have had to drop to only 42% of what they were 5 years ago. As far as I know earnings have been increasing over the past 5 years not decreasing, but I don't know how the nasdaq 100 is formed or how companies are swapped in and out. If it's just the 100 biggest market caps, maybe too many internet stocks got into it and displaced other companies earning more, however if that's the case, then I'd consider this statistic grossly misleading. (since the companies earning a bunch are still there just not in the top 100) If the companies in the index haven't changed in the past 5 years then I'd be very surprised to find that this statistic is true.