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


To: Death Sphincter who wrote (12503)6/3/2002 12:37:19 PM
From: David Howe  Read Replies (1) | Respond to of 19219
 
<< PE is still skyhigh right now >>

Not if you look at in the context of low interest rates.

Look at a bond as an equity with a PE. 4% bonds have a PE of 25. 8% bonds have a PE of 12.5. PE's should be twice as high during periods with low interest rates (ie. 4%) as they should be with higher rates (ie. 8%).

Simple theory and no doubt understood by the big boys JT is tracking.

IMO,
Dave