Texas Instruments - Good buy now or should we wait? Message Board

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Technology Stocks : Texas Instruments - Good buy now or should we wait?

TXN 194.50

-0.3%

10:37 AM EST

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To: John Chen who wrote (5836)	4/13/2002 11:30:16 PM
From: Jacob Snyder	Read Replies (1) of 6180

There are a lot of people in cash, who won't buy stocks until the S&P 500 is at a trailing PE of 10. Some of them have been in cash for years. Some sad people just gave up on stocks since 9/11. They're now patiently waiting till valuations are "reasonable", like where valuations troughed in the 1990 or 1973 recessions, and they're sure it'll happen, eventually. And they'll still be sitting on their cash, long after the bottom. Unless we get another big "shock" like 9/11/01, we've seen the low for this Bear Market. With every passing month, it gets less and less likely that we ever see Nas 1400 again. Here's an exercise for the UnExuberant: Take a graph of the inflation rate, for the last 40 years. Take a graph to the E/P of the market (inverse of the PE), for the last 40 years. You will notice, that the two graphs are identical. And this will lead you, unwillingly, to the conclusion that the market's valuation is about where it should be now, given the very low inflation rate.

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