|
PureBytes Links
Trading Reference Links
|
> -----Original Message-----
> From: John Cappello [mailto:jvc689@xxxxxxx]
> Sent: Friday, September 06, 2002 4:12 PM
> To: Gary Funck; Realtraders@xxxxxxxxxxxx Com
> Subject: [RT] P/E inflation and the tenuous relationship between E and P
>
>
> Dear Gary,
>
> I appreciate your response and simply believe it is not a cut and dry
> logic issue.We are also comparing apples to oranges when you compare
> Schiller data to American Fund Group data which I have in hand.I make
> no comparison of any other fund group but believe most financial
> planners would lean toward the oldest and biggest and best managed
> funds. 5% annual withdrawal and still having close to double your
> money is not bad.
John, I agree that this is really an abstract debate. I'm curious though,
which American Fund were you using as the comparison base line? I did a
spreadsheet calculation, which says that to double your money in 10 years,
the basic appreciation rate was 7.18%. With taking 5% out every year, the
total return would have to move up 12.24% per year in order to achieve a
double in the price. That's very good when you consider the S&P price total
return was 4.78%/year in the 1970's.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
4 DVDs Free +s&p Join Now
http://us.click.yahoo.com/pt6YBB/NXiEAA/MVfIAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|