To some people, yes. But to many, it is not. That should dawn on them by late summer, thereby setting the stage for the traditional September/October decline. Even stocks like LSI, that are already down 80% from their highs, will take a hit then.
The bottom-line is that there is so much complacency (I am speaking about the overall market here) that it is simply not conceivable that the markets will make a bottom at 28 times earnings. Heck, there has not been a single market TOP (prior to the insanity of the last couple of years) that happened at 28 times earnings.
As for the Nasdaq, since the earnings have vanished, there is no PE ratio at all. Now, that's a nice point to start a new bull-market, isn't it?! :-)
I have noticed the repeated 17 to 22 and back to 17 trips of this one, and sometimes am tempted to trade this stock (not my style) but I have the sneaking suspicion that when I do it, that will be the last time the stock would bottom at 17! :-) So I won't try my luck there. |
