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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Boca_PETE who wrote (6330)6/28/1999 11:39:00 PM
From: Carl R.  Respond to of 15132
 
Pete the problem is actually more complex than that. We start with the hypothetical numbers, Y2K earnings or $51.39, and the S&P at 1540, giving a PE of 30. But if the PE multiples stop rising and start to fall, then along with the S&P, consumer spending will also fall, and Y2K earnings will not be $51.39, resulting in possible additional downside moves. And that is how you can get a bear market.

Carl