Agreed that the PE's are higher for growth stocks than they used to be. However, we are not in the stage of the market, IMO, where those old PE levels are the new order of the day.
We are getting a bounce where many will semi-believe the dreams of 2000 again(excluding the *real* excesses), if only for a few weeks/months. Once this rally gets underway -- and I and others (like Don Hays, who has called this whole correction accurately since about 4/99) believe it has started. NT can easily pop to mid-40's quickly - a price that was considered dirt cheap as recently as, when, October/November? And, the institutions will go to an NT -not the small caps like RCN, NOPT, and others that have already bounced to the tune of a double or triple in the past few days.
Perhaps, later this year, after this happy-days-are-here-again rally fails, "normal" PE's will come back, and, all things being equal, a 20-something multiple for NT, et al will be the case. Not yet.
Then again, if earnings are disappointing, we get mired in the high $20's. |
