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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: mister topes who wrote (1430)9/4/1997 12:14:00 AM
From: Alan Bell   of 42834
 
I too would like to see this thread return to its charter. On Sunday's program, did anyone else hear Bob say "that the economy is slowing down a little bit." He said it very intentionally. This would seem to be a change in his position. While he continues to say that the market will hit new highs, in the past year he has been quite bullish on the economy as well.

Given his repeated statements about the market being able to have a max PE of 20-22, wouldn't a slowdown in the economy mean lower earnings which would mean a higher PE ratio. How is this compatible with his staement that we will hit new highs? Is he hinting at what the market might do at the end of the year after it hits the new highs?

An issue he mentioned last year was that the earnings numbers did not take into account a large amount of corporate stock buybacks. That would seem to allow a higher PE ratio. Is that still happening?

Alan
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