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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (20980)	6/29/1998 4:41:00 PM
From: Andrew Brockway	Read Replies (2) \| Respond to of 70976

To All: A story we've all heard before, but maybe it's time to tell it again. From Briefing.Com: The trailing 12 month price/earnings (P/E) ratio for the S&P 500 using "as reported" earnings is now 28.7 . This is very high historically, and well up from the P/E of 22 at this time last year. On Friday, First Call noted that the percentage of firms warning of worse-than-expected result is up to 68% of all companies that have made comments about the quarter. This figure normally runs about 57%. This suggests there could be more underlying problems than analysts realize. The market is thus trading at a rising P/E while earnings growth is less than 4%, and slowing down. Meanwhile, the S&P tacks on 3% in a week. The bubble expands. Andrew