It's the same logic that goes into paying a higher p/e ration on stocks that have higher earnings growth. 

@David Saucedo Apart from the fancy PE/LBO model used by institutional guys, most SME (small to medium sized enterprises) have always been bought and sold throughout the world.

I never touch the money personally, and checks are made out to my 401k trust account, not me.I've had a lot of success with the stock market, but I'm leery of the current PE ratios and happy for the alternative investment options the SD Solo 401k provides me.

No different than anyone who owns a 401k invested in the stock market and couldn't tell you what a PE ratio is. 

That is indeed correct and I would like to share an example - we are currently working with an investor (PE fund) in Hong Kong looking to acquire commercial real estate in the US for 40 million USD (cash).  

Hey @Rocky Pe Benito, yes I will continue to invest here.

@Patrick Martone I myself am not an engineer but my father is a PE.

If you are accredited, there are various debt funds around normally paying 8-10% as PE in the capital stack. 

I used to, but given the way the Fed has manipulated rates and asset valuations, and the frontrunning HFT algos, I think what many would consider "normal" stock valuation (Gordon Growth model, DCF, P/E ratio and such) holds no water anymore.

It seem the PE firm also has quaterly returns.So how does the taxation work on this?