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

To: Michael Bakunin who wrote (57285)	4/25/1999 11:49:00 AM
From: Freedom Fighter	Respond to of 132070

Michael, >>I didn't see the article, but when BARRA (whom S&P hires to do the job) separates the 500 into growth & value indexes, mostly by P/B and growth rate, only 150 or so end up 'growth'. << Thanks for that info. That was part of my point. I believe he said his growth index was made up of 27 companies. I can put together a portfolio of 27 companies with high growth prospects that "may" be justified in selling at premium PEs too. I couldn't do it for 500 of the biggest companies in America. And even though there are many high growth companies in the S&P500 now, that has always been the case. Perhaps it is now slightly more weighted that way than in the past, but it can't account for a PE ratio more than twice the long term average. And it's not comparable to a portfolio of 27 pure growth stories as he seemed to be suggesting. Wayne