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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Leo Francis who wrote (32619)	9/16/1998 10:15:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Leo, It is true that pe ratios are high in Japan, but since stock valuation is at least partly a function of the risk free interest rate, we have to notice that the rate is a wee bit lower in Japan than in the US. Also, since there is no earnings, we are seeing the usual situation of high pe ratios at a trough in earnings for major companies. The only question is whether the trough is going to dig any deeper. <G> Of course, in the US this time around, we are getting record pe ratios at the top of an extended economic cycle. That isn't the way it is supposed to happen. So, either this economy is going to keep on roaring ahead, or stock valuations are coming down. I know which way I am voting on that one. MB