Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The Dow did hit about 15 PE (as I calculated it at the time) last October. Bad bear market often ends up much lower, but with interest rates as low as they are, the same rule may not apply. For instance the PE at the low in August 1982 was around 7 or so, but treasuries were at 13% to 16% at that time, so compared to returns in safe instruments, people make the argument that the 1982 PE of 7 was really a PE of 15 or so relative to the long term rates. It seems they just hit QLTI here, an OB at $9.5 I had was filled a little while ago at $9.39.

Zeev