A.I.M. Users Bulletin Board

[JDerb]

Hi Allen..

From 1990 to 1997 the S&P avoided a 10%+ decline (1994 was close), also from April 2003 to September 2007. Thus 4 years without a correction is possible, especially if earnings climb and inflation and interest rates stay low vs. history, but a higher PE raises the risk.

From 1900 to 2007 there were 117 'moderate corrections' of 10%+ averaging 1.1 a year. These years are all prior to Fed QE. So who knows. Maybe the Shadow.

The higher P/E, which is still in the moderate risk area, (Value Line 19.3) is somewhat of a concern but das macht nichts because with AIM if it does correct it just offers the purchasing department an opportunity for an overtime bonus. ;o)

Take care.
Jon