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Wharton Professor Jeremy Siegel, speaking to Wharton's Advanced Management Program in late October 2008, shows a chart of historical Price-to-Earnings (P/E) ratios in the stock market back to the 1800s. In the classroom, Siegel notes that none of the stock market ups and downs to date are outside of historical norms. If fact, the recent stock market downturns have finally pushed PE ratios into territories that make stocks an attractive long-term buy.
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