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To: BGR who wrote (73712)	11/4/1999 6:57:00 PM
From: Defrocked	Read Replies (2) \| Respond to of 86076

BGR, that was almost a civil post. A couple points: Yes, obviously the market thinks future cashflows justify the existing P/Es. But past experience has never borne out these levels. They're are many equilibrating market mechanisms that act to reduce or inhibit successive years of returns we've witnessed recently. I don't like the risk/reward ratio and thus am mostly in cash. If I'm wrong, the consequences are far less than if I'm right and fully invested. P/B and P/S are often used as rough rules of thumb in valuing businesses and are related indirectly to DCF in terms of payback length which in turn implies a rate-of-return. IMHO greed is classless and can infect anyone. Most professionals I know are "greedy" enough not to have anything to do with this scam-ridden market as they value their money and integrity over the long term. OTOH many,many "new era" investors don't have clue as to how difficult it is to achieve 25% RORs over time. Instead they've greedily come to expect even higher returns forever without any regard to downside risk.