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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (200)	4/19/1998 11:35:00 AM
From: Freedom Fighter	Respond to of 1722

Porc, << No one that I am aware of has stated that PEs are inflated due to ROE measurements. >> >For clarification, I'm saying that ROE is inflated both by an >overstatement of earnings and by an understatement of equity. Sorry, I misunderstood what you were saying. I agree with you. That unfortunately means that it is awful difficult to justify prices twice as high as the long term average and 50% above other new eras. It would be less difficult if we thought that ROE was both real and sustainable.