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To: donald sew who wrote (51270)	8/31/1998 8:06:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 58727

I believe current operating earnings are about 48.60 on the S&P and at a close of 958 that produces a P/E of 19.7.

To: donald sew who wrote (51270)	8/31/1998 9:12:00 PM
From: FJV	Respond to of 58727

Don, Fundamental valuations based upon P/E need to be mitigated by prevailing interest rates. In the 70s bear the P/E on the S&P did go as low as 6. Interest rates were, however, very high at the time. The current P/E for the S&P is currently about 25 x trailing earnings. I agree that we may head down to 20 x, but unless bond rates rise for some ridiculous reason, that would be the bottom on a fundamental basis. Fear, however, can take us lower before the market reaches equilibrium. BWDIK. Franco