In Brad DeLong’s Semi-Daily Journal: George Bush Predicts P/E Ratios Will Rise. Megan McArdle Disagrees.
Two more fans of regression to the mean.
In Brad DeLong’s Semi-Daily Journal: George Bush Predicts P/E Ratios Will Rise. Megan McArdle Disagrees.
Two more fans of regression to the mean.
Date: 07/25/2002 00:00:00 AM
Yes, but do thirty Helens agree?(Wonder if anyone will get that one…)
Date: 07/23/2002 00:00:00 AM
If the P/E ratio is 32 now, and historical is 20, then it could quite easily swing to the other end of the pendulum, which would be 12, before coming back to the norm at 20.In fact, for a historical norn of 20 to hold, it would almost HAVE to go substantially below 20