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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (17707)	4/30/1998 1:19:00 PM
From: Bonnie Bear	Read Replies (4) \| Respond to of 94695

tippet: I heard they announced this product a few weeks ago- it's new. And such timing! Next thing they need is executive compensation futures.

To: yard_man who wrote (17707)	4/30/1998 1:42:00 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 94695

Just got this from Schwab.....wonder whos kidding who here!!! Comment:ÿ While stock prices have enjoyed positive gains over the last few years, the resulting higher valuations such as P/Es have drawn some concerns.ÿ While there is no question that P/Es are etraordinarily high, there is also no question that inflation - a critical P/E valuation link - is extraordinarily low.ÿ Given the inverse relationship between the two, valuations may not be as high as some might think. A reply from Greenspan during a Q&A session on February 24th explains the issue further:ÿ Question from Sub-Committee Chairman Castle (R-Del):ÿ "The Dow Jones Industrial Average is now above where it was when you expressed the opinion that it might be overvalued.ÿ Is that still your view today?" Greenspan:ÿ "You're referring to my now rather infamous two-word remark, which I'll leave unrepeated in this context. "What I indicated back then, and this (was) December 1996, was that I was quite concerned about how we would know when the market exhibited irrational exuberance, meaning when it got beyond various different measures of evaluation. "What has occurred since is what in fact I indicated in my testimony [2/24/98].ÿ It's that the market has been driven by improved expectations of increasing earnings, in part a reflection of a real improvement in underlying productivity, which had not been apparent back then. "...I've been around much too long to experience another new (economic) era.ÿ But there is no question that there is something different about what's going on in this economy.ÿ As I pointed out earlier, we have not had ... seven years of business cycle expansion in which not only the underlying forces of destabilization did not occur, but things are improving."