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

To: George Martin who wrote (72678)	3/18/2001 11:13:20 PM
From: Saulamanca	Read Replies (1) \| Respond to of 99985

Let's hope history repeats itself. George, We might have a ways to go then. Some ways of looking at the market, however, suggest that it is on a par with the 1974 bottom. One yardstick is corporate earnings. When the Dow Jones industrials hit 577.60 in 1974, their price/earnings ratio was 5.8. Today, with the Dow 200 points higher, the P/E ratio is only 6.5. The S.& P. 400 industrials are lower than in 1974. Their P/E is currently 7, compared with 7.2 in 1974.