No. of Recommendations: 1
>>In my opinion, today's P/E ratios are bogus reference points because there is no way to know what is going to actually be there a year from now. If the earnings do as they very well may, a P/E of 30 today might well be P/E of 10 in a few years. It all depends on the business and the economy...but mainly it has to do with the alternatives. Even if the 10 year treasury bond kicks back up to 6%, that represents a P/E of 16.7:1...still pretty high compared to a great growth stock with increasing earnings.<<


Lets not forget that many of these p/e's of 30 were probably spruced up to get them that low. Last week I posted an article referencing the fact thaat pension fund deficits are now at record levels. How can pension fund deficts arrive at record levels after a big run up? This rally should have helped this problem - not made it worse - unless the companies were not applying money to pension funds during the rally as they should have been. Where else could this money have gone? Earnings maybe?

Another issue that has not been mentioned out here lately: Insiders are continuing to sell like crazy as they have been since March. These guys can be 'wrong'for a while - until the public enthusiasm wears off but they are always right in the end. If you think you know more about the DELL company that Michael Dell(who has been selling like a mad dog since March) then all the power to you -you are a beter man than me.
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