To: Bernard Ng who wrote (94234 ) 10/19/2001 2:30:28 PM From: George Victor Read Replies (1) | Respond to Bill Bonner has been saying the same thing for many weeks now ....For reference, readers might want to know that stocks today are about 135% of GDP...nearly twice as high as At 26 times earnings, the S&P 500, even after a horrendous year, was still selling at a higher P/E than the peak of the great bull markets in 1929 and 1964. Certainly, stocks are relatively cheap - relative, that is, to where they were trading in March 2000. But, as a hedge fund manager I spoke with yesterday told me, "It would be hard to say that stocks are absolutely cheap. They just aren't." Even now, the S&P 500 index sells for about 25 times earnings. Valuations like this used to occur only at market tops... "After 1929, the strangely forgotten (or covered up) fact is that the Fed cut interest rates rapidly from 6 to 2 percent by early 1930. Pundits of the day called dailyreckoning.com
