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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Prestone who wrote (2974)1/25/1999 8:15:00 PM
From: Justa Werkenstiff  Read Replies (1) of 15132
 
Prestone:

Re: "As far as valuation, he said 1120 on the S&P for a buy point. I didnt hear him give a specific number for the nasdaq or dow. Is this the valuation you are referring to, or are his valuation based off the P/E of the S&P?"

DOW is not targeted currently because it undiversified and very cyclical index not representative of the market. NASDAQ is more volatile that S & P and is not used to target buy points. It is safe to assume that when the S & P is at a buy point, one can buy the NASDAQ wherever it may happen to be realizing that it could continue to go downwards because of its beta.

Re: "I assume the monetary indicator is the discount rate? Or does he get into the CPI and PPI? As far as the economic cycle, is his indicator based on GNP or GDP, or does he use a different method?"

M2 and M3 along with the posture of the Fed. and probably other indicators as well.

Re: "As far as the economic cycle, is his indicator based on GNP or GDP, or does he use a different method?"

Economic growth is a component as well as projected S & P earnings as well as other things.

Suggest you request a free back copy of MarketTimer to get the touch and feel.
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