| As long as increases in stock prices are driven entirely by increases in PE, with no contribution from an increase in E (real E, not proformaE), yes, I will maintain a jaundiced view of all rallies. I'm willing, perhaps, to pay for an increasing forward 12-month expected-E, if I think there is a realistic chance of it happening. There are, currently, only very tentative signs that forward 12M earnings estimates have yet bottomed. This current partial reBubbling can't possibly go on for "years and years". The alternating panic selling and panic buying will continue. It seems like, eventually, I can buy anything I want, at distress prices, if I just patiently wait for panic selling. Sooner or later, it happens. All IMO. |
