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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (1212)	9/27/1998 1:16:00 PM
From: Alan Bell	Read Replies (1) \| Respond to of 15132

re: I believe the PE top is in place and the rally will only be back to that point The PE ratio is inversely tied to interest rates. As rates are dropping, this potentially allows the ceiling of the PE ratio to rise. While earnings growth is reduced, it isn't likely to go negative through the end of next year. GDP is continuing to expand and productivity continues to increase. Bob's prediction of new highs sometime in '99, would in some sense be a loss of 6-7%. This is the amount equities would be down relative to an investment in treasuries made in July '98. -- Alan