Subject: Re: OT Grantham Sounding AI Alarm
I'd wager a small amount that to-the-degree extremes up in earnings will be met with similar down ones.


Maybe, maybe not.
I know of a guy who refused to buy GOOG at 100.
Another guy who refused to buy AAPL until it came back down to 100.

That was before 40-1 splits in GOOG and 28-1 in AAPL.
That's split-adjusted 2.50 for GOOG and 5.00 for AAPL.


One of the issues that's going to confuse people yet again with things powerfully cyclical is that when the growth is extreme and the PE's are single digit, even 5 and below, that's when the stocks will be most over-valued.

The Historical average of the S&P500 is 16.2.
Currently SPY P/E is 26.1

MU P/E is 25.6. Whew!