I consider the DOW to be overvalued if you consider growth potential over the next three years and the high P/Es. The current prices of the stocks do not justify the high P/Es, therefore, the real value of the DOW is approximately 7200. I think the current sell off is not due to the real value of the market, but due to investor ignorance, war, government, and accounting practices. Finally, some of the air is escaping the balloon. I still can't figure out why it is taking so long for the market to reach its real value. I suspect that a lot of the money is from 401K funds that people contribute to, but do not pay any attention to how they are performing.


Good Luck


Mark