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

To: Joseph G. who wrote (34475)	10/25/1998 11:39:00 PM
From: Ilaine	Read Replies (1) \| Respond to of 132070

Jeez, Joe. Ouch. I think Mike was nicer: >>>>both earnings (or dividends, if there were such things any more) and stock prices are quoted in the same currency<<<< However, I was actually asking about relative valuations. If you say x is overvalued, it must be on some kind of scale relative to something other than just itself. Today's P/E ratio may be internally consistent because both price and earnings are quoted in the same currency (tugriks, if you will, and I have no independent clue as to whether such a currency exists, I will defer to your expertise). If you want to compare them to last year's P/E or any other, you have to adjust for changes in dollar value, don't you? CobaltBlue