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To: GST who wrote (131772)	9/23/2001 9:29:04 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

Good point about price-to-sales as an alternative. Know of any site with historical P/S data? The main point all these born again fundamentalists <g> forget in earnings based valuations is that, historically, PEs tended to be higher when earnings have been weak (in anticipation of above average growth in a rebound) and lower when they've been abnormally strong (again, in anticipation of a return to the norm). In other words, investors "normalized" earnings before valuing them. Of course, the bubble didn't follow that pattern. I think it's funny that so many who, before this year, dismissed the significance of PEs and warnings about valuations now are preaching the gospel of "14.2 is the historical average PE, so we're going to 500 or worse". Bob