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Strategies & Market Trends : Waiting for the big Kahuna

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To: Barbara Barry who wrote (8940)11/2/1997 11:19:00 PM
From: Slide Rule  Read Replies (1) of 94695
 
Barbara,
be careful with "economy OK" and "earnings have been good". It's been OK recently in the USA, but that could change if earnings dropped off in '98 or went flat, or we see global currency troubles.

FWIW, lotsa stocks (especially techs) are said to have their future earnings already priced into today's stock price. The NPV calculation is quite sensitive to changes in string of future earnings. If earnings expectations drop, then price should drop, too.

Of course, maybe "this time it's different" and the business cycle no longer pertains -- or, maybe not. JMHO.
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