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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Eric who wrote (50228)	3/21/2001 8:18:59 PM
From: Sonki	Read Replies (1) \| Respond to of 77398

On Dec. 5, 1996, with the Dow at 6437 and the S&P 500 index at 744, Fed Chairman Alan Greenspan issued his famous warning about "irrational exuberance" -- The P/E of the Dow never fell below 15 after 1991. you apply pe of 15 to s&p operating ernings... you get the idea where greenspan wants the market to go to for market to be a fair value w. it's fundamentals. btw: pe rolled between 15-20 on s & p for nearly 16 yrs before 1974 when it got chopped to 7 pe during the 74 recession. so i feel 15 pe in sp is reasonable.