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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: David Howe who wrote (11319)3/23/2002 1:21:17 AM
From: lifeisgood  Read Replies (1) of 19219
 
<< S&P500 P/E is around 49. How could it go any higher? >>
One of the likely scenarios over the next few years is that two things will happen.

1. Earnings will recover from recession lows and grow somewhat rapidly from these levels.

2. The market will go up at a modest rate.


don't forget the most likely but least anticipated scenario...

3. The current market bubble will burst just like it did the last time PEs were this outrageous (Spring, 2000) and the resulting 50% haircut will bring the Comp to around 1000.

best...

LIG
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