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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.42-2.4%Jan 20 3:59 PM EST

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To: Rock_nj who wrote (59261)5/5/2002 1:01:03 PM
From: RetiredNow  Read Replies (1) of 77400
 
I'd agree with you except for one thing, markets regress to the mean over time. Currently, the mean PE is still way lower than current market levels for all the major indices. So although it looks like we've fallen hard, the truth is we haven't fallen far enough to get back to the mean. Why do you think gold, real estate, and timber stocks are doing great, while the dollar is in imminent danger of crashing? The market is broadcasting to us that corporate profits from the big players don't justify what they are valued at today. We're just seeing an orderly retreat. This year, small cap value, real estate, gold, other hard assets, and bonds will yet again beat their large cap brethren. Like I said before, you just have to be lucky enough to know where to be to make money. Either that or be smart get diversified.
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