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Well the PEs should climb if what I am seeing is correct. My wife got an ad
for some perfume at $30,000 per bottle and at a restaurant we ate at lately
there was a nice wine list with selections in the $5,000 to $7000 a bottle
range. Of course none of this is inflationary. Neither will be $3.00 per
gallon gas.
Bob Fulks wrote:
> And earnings just continue to creep along at a pretty constant 6.1%
> per year long term (see chart) so that if prices go up faster than
> that, as they have for the past 20 years, then it has to show up in
> the PE ratio.
>
> And most people would think that the PE ratio has to revert to the
> mean someday...
>
> Bob Fulks
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