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Strategies & Market Trends : The Amateur Traders Corner

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To: steve susko who wrote (1989)10/12/2000 8:00:05 PM
From: Tom Hua  Read Replies (2) of 19633
 
Steve, if we enter a deep bear market, yeah Nasd 2000 is possible but I think it's unlikely. When Nikkei was at its peak, the average PE was more than 100 and is still too high today compared to U.S. companies. However, PE comparison is not very meaningful because of Japanese's vastly different accounting method. In Japan, it's customary to mask earnings whereas, in the States companies (including big names like CSCO) use all kinds of accounting tricks to boost earnings.

Regards,

Tom
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