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To: larry who wrote (19813)3/28/2001 9:42:11 PM
From: zbyslaw owczarczyk  Read Replies (1) | Respond to of 24042
 
re: No matter how you look at the market, the valuation of SP 500 right now is higher than those of the beginning of the previous
bear markets


it is very naive to assume that valuation of S&P 500 has to be the same as it was during previous bear market.
in the past inflation was in double digit numbers, were now is under 3 %
lower inflation, higer valuation of S&P500
every economist and analyst will tell you the same

ZO



To: larry who wrote (19813)3/28/2001 10:23:53 PM
From: uu  Respond to of 24042
 
Larry:

> Sure they don't deserve such lofty valuations when growth rate is meager or negative.

At the same time you need also to consider the amount of money they generate compare to previous bear markets! basically what you are saying is if a Company that used to generate $1 in revenue 10 years ago and had a valuation of $10 with a growth rate of 20%, should have the same valuations now when it is generating $5 in revenue (or 45 times more than what it did 10 years ago) and still has a growth rate of 20%!!!!!! Surely you dont mean this!