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

To: Michael Bakunin who wrote (54792)	4/6/1999 1:16:00 PM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Just a little note about segmentation ('Nifty Fifty' disease): the "market" (S&P) currently carries a forecast PE of 25-8, depending on whose forecasts you believe, if anyone's. The top 25 companies in the S&P, though, which make up about 40% (!) of the index these days, carry a forecast PE closer to 35. Indeed, PE expansion explains much of the market's stellar rise in the last few years. Not that that can't continue; I just think it won't, not indefinitely.