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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 691.81+0.6%Jan 6 4:00 PM EST

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To: Topannuity who wrote (70319)2/23/2001 10:40:12 PM
From: GST   of 99985
 
A couple of things on the p/e of 32. As profits fall this year, the collective p/e goes up. We don't know the future profit picture, except to say we are told it is "bleak". Thus, the calculation you quote uses the most generous assumptions: companies losing money don't count and companies facing declining earnings don't count -- unfortunately most of the Naz 100 companies fall into one of these two categories.
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