sniff Posted March 7, 2003 Report Share Posted March 7, 2003 This PE chart coutesy of Robert Shiller...Yale I know this is not the 1930's but I do see some simularities. One can probably read a lot into this chart. But two things caught my eye. 1... after each prick, the rate of decent. Could even call it parabolic for that long timeframe. 2... the overshoot , in 1930 the line did not stop at the average. But continued well past. The red circle and possible projection of current bubble. ( The air is still coming out) We had this discussion about a year ago... And most felt that the average was about PE 15 and a momentum overshoot would be about PE 12 But this chart seems to suggest about 6....... if history comes close to repetition. ... Could that happen? Or is there more to this chart than I see?... Some might say it is different this time, but is it really? Link to comment Share on other sites More sharing options...
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