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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (68454)	8/18/2006 8:42:44 AM
From: Wyätt Gwyön	Read Replies (3) of 110194

i have no idea about that statement, or what facts may or may not underpin it. but i find it nonsensical on the face to consider energy the "most loved" sector when it is only 33% of its past bubble weighting, while tech and finance continue to maintain huge bubble weightings. i remember reading last fall in Barron's, in one of their Big Money Polls, a list of the stocks big money managers considered most overvalued. on that list were some usual suspects like GOOG, but also there was VLO. VLO was then trading at what would turn out to be a forward PE of about 4.5. yes, a sub-5 PE and the stock was considered one of thte most overvalued by the people that count. gee, what an overvalued sector. today VLO trades at sub-6 forward PE, gee it's so overvalued because everybody and their auntie loves energy and hate tech, which is where the true value is. the simple fact is, money talks, bullshiat walks. energy continues to be underowned and trades at huge PE discount despite its outsized contribution to both absolute earnings and incremental earnings growth.

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