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


To: Softechie who wrote (11310)3/22/2002 4:29:44 PM
From: David Howe  Read Replies (1) | Respond to of 19219
 
<< S&P500 P/E is around 49. How could it go any higher? >>

One of the likely scenarios over the next few years is that two things will happen.

1. Earnings will recover from recession lows and grow somewhat rapidly from these levels.

2. The market will go up at a modest rate.

So, believe it or not, average PE's will come down while the market goes higher. Earnings could grow faster than equities increase in price.

IMO,
Dave