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To: MrGreenJeans who wrote (3821)3/14/1999 1:54:00 PM
From: DD™  Respond to of 15132
 
RE: Trailing PE's

The reason they are used so much in a market context is for historical comparative purposes.

Pudants look at trailing PE's and say to themselves that the market must be overvalued today because it never has been this highly valued in the past.

So much for the pundants <ggg>.

Histrical PE's are even less valid in relation to specific stock analysis as compared to an overall basket of securities, such as the S&P 500.

Just ask William O'Neill.

DD