Replies to post #29761 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi Clive, Re: Treas minus Div Yield...................

The thing that I like about this is that dividends are a more stable measure aganist which to work an indicator. The P/E varies with anticipation of future earnings and also some troubles with proper accounting. P/Es looked reasonably attractive during 1999 and 2000 but that was before Enron's and WorldCom's auditors refused to acknowledge the companies' internal accountings.

Companies report dividends and also pre-announce dividend payments, so the data is better, I believe. Both this and Relative Valuation are nice measures. I felt a bit "let down" back in 2000 by the Value Line P/E as well as the S&P500, Dow 30 and NASDAQ P/E estimates.

Best regards, Tom