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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Jimbobwae who wrote (15749)	12/23/2001 9:08:09 PM
From: Road Walker	Respond to of 99280

Jim, On Index PE's. The PE on the S&P 500 started declining some time in 1999, even though reported earnings were increasing dramatically at the time. Well before the market (and earnings) imploded, folks started paying much less for a dollar of earnings. The PE on the S&P 500 started expanding in September. Folks are willing to pay much more these days (more than at any time in '99 or '00) for a dollar of earnings; with earnings still declining. Maybe the "market" is wrong about the future. Maybe the aggregate reasoning of millions of market participants is wrong. I doubt it. Anyway, I agree with your post [edit- from a mid to long term perspective]. John