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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Marty Rubin who wrote (13246)8/28/1998 6:20:00 PM
From: Don Westermeyer  Read Replies (3) of 18691
 
Abbey C. is screaming the market is now 10% undervalued.

She says the fall is due to a shift in sentiment - not valuation.

No kidding Abbey! Maybe it was a positive shift in sentiment that sent the market to record valuation levels - not valuation their either. I wonder if that crossed her mind.

With many of the worlds nations now slipping into recession (Hong Kong officially slipped into recession today) I doubt there will be any tremendous growth in earnings to support the current market P/E of 25.

What really kills me is there is a lot of very good values in small cap stocks right now. Many trade with P/Es in the single digits that have real growth rates still (unlike the accounting gimmicks used by AMZN, AOL, etc.)
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