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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST

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To: Saulamanca who wrote (57117)7/24/2000 2:51:20 PM
From: The Ox  Read Replies (1) of 99985
 
I read somewhere recently that earnings growth from
94 to 99 for the NAZ/100 averaged around 25% per year
during this period.

800 x 1.25 = 1000 '95
1000 x 1.25 = 1250 '96
1250 x 1.25 = 1562 '97
1562 x 1.25 = 1953 '98
1953 x 1.25 = 2441 '99
2441 x 1.25 = 3051 '00
3051 x 1.25 = 3814 '01

Using this chart, the Nasdaq is trading on expectations
for next year and continued 25% earnings growth. With
the Nasdaq at 4000, I don't see how this is so far out
of line? Sure seems like we are pretty close to fair
value!

Just my opinion,
Michael
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