IQBAL,
Question:
The major indices have corrected down to their 200 day moving averages, and have reduced their capitalizations by the 10% to be officialy called a 'correction'. The Russell 2000 has been in what many are calling a bear market, and if you look at valuations in
beaten down sectors, like semiconductor equipment, and oil well drilling stocks you see PE's in the lower teens. (PE is not at all my favorite indication of a good stock purchase, to me just a reflection of the leeway the street will give a particular franchise)
Question is, can a correction here be called complete with stocks like MSFTpe 62, DELL pe 73, CSCO pe 76, KO pe 50, GE, G, PG, pe in the 30's? These are all historically 'high' valuations, and these stocks haven't taken the hit others have, although they are off their highs?
(Incidently, these are some of my favorite stocks, and I realize the PE's listed here are trailing). |
