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

To: Death Sphincter who wrote (12517)	6/3/2002 1:34:56 PM
From: David Howe	Read Replies (3) \| Respond to of 19219

I'm going from memory here, but I believe the average PE for the S&P over the past 100 years is something like 17. Aren't we now at around 21? 21 is only modestly higher than 17. Upward forces on this are low interest rates and a recovering economy. Downward forces are terrorism, potential war and bagholders of the late 90s running scared and selling at any price. Additional downward pressure is provided by short selling in order to take advantage of the running bagholders. Not sure when the downward pressure will end, maybe not for quite a while, I'm just saying that equity prices aren't that overvalued, perhaps even undervalued on average. IMO, Dave