Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Oeconomicus who wrote (50475)	3/22/2001 12:57:41 PM
From: Rarebird	Read Replies (1) of 94695

<Rotation back into techs going on?> Yes, temporarily, the Bear has bigger fish to fry at this stage of the game, like the financials. Look at the BKX. As this Bear extends timewise and pricewise, the P/E compression of such inflated high tech shares is going to carry over into compression of other companies as well; after the high-tech shares are finished with their carnage, the high-P/E blue chips in all industry sectors, including the biggest names, will be next. This is the way that bear markets traditionally progress. The Nasdaq as a whole still sports an astronomical P/E whereas the average profit growth of these companies is only about 15%; that implies a decline of 5/6 of its value merely to return to parity. At this point, I should let the Maestro(I'm not kidding), Bill, speak. Hi Bill!

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