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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (72228)	6/23/2015 5:31:45 PM
From: Joppike	3 Recommendations Recommended By Chip McVickar GROUND ZERO™ mary-ally-smith Read Replies (2) \| Respond to of 220441

Thanks! I think a couple of big reasons could contribute to the high P/E: 1. There's been a ton of liquidity pumped into the global economies, a lot of this extra money has gone into the equity markets. Yet the economies everywhere are struggling so there doesn't seem to be any reason why we won't have more QE and lower interest rates for the foreseeable future. 2. Internet stocks have made a resurgence and they tend to have a much higher P/E than average. This makes sense because a lot of tech startups have low overheads, which huge growth potential. We saw this in the late 90s and it seems to be the case now.