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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (10679)	12/9/1997 11:33:00 PM
From: Rational	Respond to of 18056

Mike. I believe savings include all forms including 401k and employers' contributions; I think even the SS is included. [In the US people do not save much beyond these forced schemes that the Congress has mandated.] On the R*P/E measure, the uncertain growth is assumed to be zero, and E is the "estimate" for the next year. This "estimate" is crude, but for an index like S&P 500, the one-year forward estimate does not deviate much from the actual; there is stock price volatility to account for such deviation. Sankar