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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (10825)	2/27/2002 12:57:06 PM
From: Shack	Read Replies (1) \| Respond to of 19219

That implies a rate of return of around 4% What do you mean by this? They certainly aren't paying out much in dividends so the premise here is 25 times earnings infers these stocks see capital growth of 4% a year? I fail to understand that model. I'm not trying to get into a debate about 'fair value' for the DOW but earnings would have to grow exponentially for those multiples make sense IMO, and we are barely seeing an uptick in earnings as of yet. Many 'cyclicals' aren't even profitable right now. And you have to wonder why GM is borrowing $3 billion. These are historically high multiples....PERIOD.