>Something I haven't quite figured out yet is why there's this big
>concern about P/E, as though it were some Law Of Physics. Yes, in
>the long run, P/Es have been lower than they are today. But also
>in the long run, every index we've come up with have been lower
>than they are today.
>Who says P/E has this magical property of having a historical
There's the theoretical reason - valuation vs. competing assets, like bills and bonds. There's the empirical reason - it's worked for a couple of centuries. But other than that, no reason at all.