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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (4259)	11/20/2001 9:46:21 PM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

davidd -- I found the article to be incomplete, for instance, his argument that the U.S. has taking major steps to stimulate the economy. The major steps is what has us all worried, and does the major steps include a war premium? Looking at the BW historical P/E chart – one would be led to believe the bubble as yet to be deflated (at least sufficiently) to kick start a new cycle. GAAP has the S&P P/E sitting an historical high of 37. WWI Premium -- P/E 6 WW2 Premium -- P/E 8 Cold War Premium -- P/E 7 Peace Dividend -- P/E 32 Terrorist Security Premium – P/E ? At best, we will see a profitless boom like in the early nineties, at worse ... a massive readjustment towards the historical averages. But, hey! I'm not selling mutual funds… Regards Frank P. businessweek.com