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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.

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To: Topannuity who wrote (1965)2/24/2001 12:24:07 AM
From: Lee Lichterman III  Read Replies (1) of 2103
 
I assume you are using forward earnings in that calculation to get it that low. Since no one knows what they are going to earn this quarter much less over the next year, I would argue that a trailing PE should be used. After all that was what was used for hundreds of years until this new pair of dimes was declared. People keep forgetting that TRAILING PEs are what the market used until the 99 Bubble but that doesn't allow the bullish views that so many want to see. <ggg> The old rule was buy Trailing PE 13 and sell trailing PE 18.

Good Luck,

Lee
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