Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Sword who wrote (1974)	10/5/1998 3:03:00 AM
From: Moominoid	Respond to of 3339

Things are still going as expected.... A P/E of 15 or so is perfectly reasonable I think. That's something like Dow 5000. Expected earnings growth is actually 3.8% now for this year which is below the 5% that gives a P/E around 15. This is all very simplistic and the correct P/E could be lower depending on what the variable being discounted is. I assume an equity risk premium of 6.5% which maybe is a bit high and that earnings is what is discounted. Wating to see Europe. It ended down Friday and Wall Street only rallied after that. David PS Frankfurt up 0.5% London opens 25 mins.