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

To: Paul Shread who wrote (14760)	8/13/2001 9:48:10 AM
From: eddieww	Read Replies (1) \| Respond to of 52237

7.5, if memory serves.

To: Paul Shread who wrote (14760)	8/13/2001 1:55:20 PM
From: Mark L.	Read Replies (1) \| Respond to of 52237

What was the PE at the bottom in 1974? Might be a better comparison, if the current Nifty Fifty ever get compressed. The P/E at the market low was 8.3. The P/E at the low for 12-month trailing earnings was 11.0. Changing the subject, I'd like to amend a previous comment of mine. I think there's a second reason why P/E's ought to be higher than historical average (the first reason I mentioned was the inclusion of what used to be venture capital investments like biotech in public equity markets). The second reason is that stocks have become a safer investment. By "safer" I don't mean that they're less likely to go down or they're more immune to economic cycles or any other such nonsense. What I mean is that the thieves who market securities and run companies are under much tighter regulation. I realize that this is an unpopular view since most people are up in arms about the SEC and the NASD. But the reality is that US equities are much better regulated and easier to research than the equities of other countries. Just as US equities deserve a premium over the equities of, let's say, Mexico, so they deserve a premium over the equities of the 1920's, which were, in terms of inscrutability and manipulation, like current Mexican equities.