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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: quasar_1 who wrote (254)10/26/2000 2:37:32 PM
From: tradermike_1999  Read Replies (2) of 74559
 
If the past few years prove anything its that valuation metrics mean absolutely nothing. Market can be "overvalued" and go higher, conversly it can be "undervalued" and still crash.

You are right there are basically two markets - the "old" and "new" economy. Or the S&P, NYSE stocks and the Nasdaq stocks. The "old" economy stocks have been dropping overall for the past few years. Get a chart of the S&P and look at the advance/decline line. The Nasdaq a/d line didn't turn down until March.
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