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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (171702)	10/22/2002 12:12:15 PM
From: chomolungma	Read Replies (1) \| Respond to of 186894

Historically, low interest rate environments have been accompanies by very cheap PE multiples as often as they have been accompanies by rich multiples. Let's see: The highest interest rates in recent history were between 1980 and 1982. During this period, fed funds never dropped into single-digits and T-Bonds breached 15%. P/Es, as defined by current reported earnings on the S&P 500 were: 1980: 9.2 1981: 8.0 1982: 11.1 The lowest rates were in the early 60's with Fed funds around 2% and 5%. (seem familiar?) P/Es were 1960: 18.3 1961: 21.6 I'm sure there have been weird periods where low P/Es existed with low interest rates and vice versa, but I still believe that there exists a fundamental reason why that is not normal.