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To: jazzcat2000 who wrote (118773)	5/15/2002 8:32:34 PM
From: Rick	Read Replies (1) \| Respond to of 152472

His argument probably ran something like this: Interest is to savings what earnings are to price (after the risk premium is taken into account). That is, in an era of 10% interest rates any P/E over 10 is high. In an era of 5 percent risk free interest a 20 P/E or more is high, but in an era of 2 percent interest payments the cut off would raise to a 50 P/E. Therefore, from the point of view of this argument, it may be nice to know what a typical P/E was in 1960, but its more important to know what the risk-free interest payments are in 2002. - Fred