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


To: fozz who wrote (73509)3/28/2001 10:59:34 PM
From: Saulamanca  Read Replies (2) | Respond to of 99985
 
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.


August 15, 1982
Dark Days on Wall Street
nytimes.com



To: fozz who wrote (73509)3/28/2001 11:12:44 PM
From: bobby beara  Read Replies (3) | Respond to of 99985
 
george, those p/e ratio's are landmines, if we are going into recession, even irrational exhuberance shiller was in denial of that on nbr recently.

bulls will be in denial of the bear market all the way down, exactly like the bears were in denial of the bull market on the way up.

yin yang