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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (17035)	8/18/2003 11:39:10 AM
From: ralfph	Read Replies (3) \| Respond to of 39344

The fact that the DOW has hit 9400 says much about how unaware many investors are. They still do not get it. PE ratios are still 4 -5 times higher than they should be if we are at the bottom of a recession. Before every recession ended since 1929 the PE ratios got down to around between 4 and 5 . Right now the PE ratio on the DOW is what ? 20 give or take. It would make sense to me that when the Dows average PE ratio got down to around 5 the bottom of the recession has been hit. The only thing that mucks this up is the Dow had reached a PE ratio of 44 during its last bull run. Its along way from 44 to 5 and the DOW never traded that high during a previous Bull. I am off ralfph