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To: Dave who wrote (174130)4/16/2003 1:00:30 PM
From: Tenchusatsu  Read Replies (2) | Respond to of 186894
 
Dave, <A more appropriate measure would be P/E. By that measure, we've got a long way to go before reaching the historical mean.>

What is the "historical mean" of the P/E ratio? Is this the one constant of the stock market, or does it too fluctuate with the changing times? When was the last time we were below that "historical mean"?

Maybe a link would be nice ... I'm sure some web page already has the answers I'm looking for in a clear and concise format.

Tenchusatsu



To: Dave who wrote (174130)4/16/2003 1:05:33 PM
From: chomolungma  Respond to of 186894
 
A more appropriate measure would be P/E.

I don't know. Most P/E measures end up lumping together such vastly different economic periods that it makes it quite useless. Do you really think the economy bears any resemblance to that of the 20s, 30s, 40s, 50s or even the 70s?

Personally, I find these P/E approaches just another Mickey Mouse attempt at static valuation.