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To: chomolungma who wrote (174144)	4/16/2003 10:30:40 PM
From: Dave	Read Replies (1) \| Respond to of 186894

Okay, first, you got me with my 10%. Of course I just meant 10. But then on the other hand you lost a Cool Point for saying that " You can't compare price to earnings without looking at where you are in the economic cycle," right after quoting my "During boom times like the 20s and the 90s you typically see high P/E ratios" which was all about how P/Es vary with economic cycles. And yes, I was skipping a lot of details about adjusting for factors like inflation, which has acted to decrease current P/Es, and dividends, which have acted to increase P/Es. So I'll modify my statement: even when adjusted for inflation, and especially when modified for dividend yields and economic cycle, P/Es are aberrantly high and we'll all feel the pain when they inevitably are corrected. Dave