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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Mark L. who wrote (14723)8/12/2001 2:48:02 PM
From: Mark L.  Read Replies (2) | Respond to of 52237
 
Oops. That should have been, "You have to go back to July, 1932 to find one lower." Sorry.

For two months in 1932 the S&P 500 P/E dropped off the face of the earth. It started the year around 9 and ended the year around 9. But in between was a crash far worse than 1929.



To: Mark L. who wrote (14723)8/12/2001 9:33:27 PM
From: Haim R. Branisteanu  Read Replies (2) | Respond to of 52237
 
Mark, what you need to take into account is interest rates. I think at the time they were around 18% today they are 5 times lower so applying simple arithmetic 9x5=45 P/E

Sorry to be so simplistic but I wanted to make a point.

Haim