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The local TV news makes much of the fact that the Down closed barely 8000 today. The S&P 500 closed at 847.75 -- which, I believe, gives it a trailing P/E (price divided by earnings in the last 12 months) of 17.3, compared to a historical ratio of 14.7, and a PEG (price divided by earnings times expected growth) of 1.39 -- a clear "sell" sign. Apparently, an awful lot of people -- not just sell-side analysts -- are still hoping that something can be salvaged out of the "New Economy" myth and the market bubble of the late '90s. John "Akatsukami" Braue Friday, July 19, 2002 |
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