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.

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

To: Earlie who wrote (53996)	3/31/1999 12:29:00 AM
From: Dale J.	Read Replies (2) \| Respond to of 132070

Earlie, don't you know that earnings, valuations and PE ratios no longer matter. <G> It's a new economy. A new paradigm. Seriously it's a bubble and it's a dandy. The WSJ had a nice article: By almost any measure devised by man or computer, stocks are pricier than they've been in decades. Compare stock prices to corporate earnings or dividends or the book value of assets, and they are at levels not seen in more than 100 years. A chart of almost any market gauge "looks like a geyser erupting," says Yale University economist Robert Shiller. Hints of a bubble about to burst are everywhere: Online trading is turning personal computers into slot machines. Every dip is described by some cable-television commentator as "a buying opportunity." The article went on to point out that in 1998 S&P earnings were only 0.6%, yet the total return on S&P 500 stock index was 28.6%. Analysts now anticipate that earnings per share will soar 16.8% in 1999 and 16.7% in 2000. Heck didn't the same analysts predict 16% growth in 1998.