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

To: SGJ who wrote (12508)	6/3/2002 12:58:41 PM
From: nsumir81	Read Replies (1) \| Respond to of 19219

The interest rate argument is the same one floated about a year back when ST (mind you) rates started to go down. What about risk and 'earnings' fidelity (among other things)? The bull (head) does not care. Everything and anything can be argued in the direction of the adopted position.

To: SGJ who wrote (12508)	6/3/2002 1:10:39 PM
From: David Howe	Read Replies (1) \| Respond to of 19219

I don't disagree with this. However, I suspect that rates will stay quite low for many years. Perhaps not quite as low as they are now, but low relative to historical levels. Thus, PEs should stay high relative to historical levels. Low interest rates are necessary to fight a deflationary forces. Those that see high inflation as a threat haven't noticed the trends lately and aren't taking improvements in productivity into account. IMO, Dave