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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (21611)	7/30/1999 11:02:00 PM
From: jjs_ynot	Read Replies (3) \| Respond to of 99985

Don, Based on projected forward operating earnings; the S&P is trading at about P/E of 28. Dave

To: donald sew who wrote (21611)	7/31/1999 10:58:00 AM
From: briskit	Read Replies (1) \| Respond to of 99985

Don & L3, regarding high PEs and buying stocks at their highs. O'Neil (IBD) says that is the best time to make money compared to buying at their lows. He makes a point of saying that PE is NOT a relevant factor in price performance, unless it is a positive indicator. I.e., the myth is to avoid stocks with high PEs or making new highs. Each weekend IBD gives a weekend review and graphic review of stocks making or at near highs. The average PE of the first 43 is 51 this weekend. From the entire 75, three stocks have a PE in single digits, and about 20 have a PE in the teens. So the average might be lower if all 75 stocks are included. FWIW MD