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To: Pruguy who wrote (30110)	8/29/1999 12:05:00 PM
From: Steve Robinett	Respond to of 41369

Pruguy, In connection with bear markets, you comment Last years 40% nasdaq correction is about as bad as it can get in my opinion Over the last 50 years, bear markets often dropped 50% from market highs and lasted a couple of years. But consider this, the trailing 12 months P/E on the S&P 500 is currently 35.64. The average P/E over the last 50 years is about 17. If the S&P 500 dropped by 50%, its P/E would be 17.82, about average. But a funny thing happens when the market gets cut in half. People stop spending and the "E" of P/E gets smaller so the P/E itself goes up. In other words, you could more than cut the market in half and still have only an average P/E. Kind of makes you want to go out and buy several thousand gallons of Rarebird's bottled water. Best, --Steve