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

To: briskit who wrote (21662)	7/31/1999 11:38:00 AM
From: Fun-da-Mental#1	Respond to of 99985

Mike D, you cite evidence that trendy stocks making new highs have high P/E. Sure, but maybe high P/E is the result of a run-up in price, not the cause. Buy low, sell high, right? Maybe we should have bought those stocks earlier when they weren't doing so well, and sell them now. Just playing devil's advocate. I know following momentum is a valid strategy, especially in a bull market. (But then what happens in a bear market?) Actually I think for P/E it's important to make the distinction between startup companies and established ones. If a startup company is successful, its P/E is likely to start out high and stay high as the stock rises, but if an established company enters a new growth phase, its P/E is likely to start low and then rise with the stock price. Comments? Fun-da-Mental