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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (3055)	4/6/2001 4:00:51 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 3536

Another macro approach is to take all of corporate profits - running around $650 billion - using that as a divisor for the whole market cap around $11.5 trillion, arriving at a P/E of 17.7. Granted some of those profits are not publicly traded companies so a $600 billion number and a P/E of 19.1 maybe closer to the truth. Given that earnings will likely grow around 6-7% (along with nominal GDP) for the future, a P/E in this range is not too bad, IMO.