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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (1627)	11/30/1999 7:04:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 19219

Peter, it will only become a habit if the mania persists. p/e has become a largely meaningless gauge of the market anyway ever since we have left the realm of reason... you could say for years that the market was fundamentally overvalued, and yet it was driven higher. imo we have to simply recognize it for what it is, namely an investment mania, the end of which we must try and recognize when it comes. until then, fundamental valuation measures, be they p/e's, price/book, price/sales, you name it, are essentially worthless. they will count again once the market has suffered a 50-70% decline from wherever the top is put in. just imo of course. re: Japan, i'll post this to-morrow, it's getting late in my neck of the woods... regards, hb

To: fut_trade who wrote (1627)	11/30/1999 11:24:00 PM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 19219

but if they keep adding these "giants", I might need to drop P/E as one of my fundamentals indicators. Peter, I didn't know anyone long still actually paid any attention to an archaic thing like "p/e". The fund managers sure don't, and their buying is what drives large-cap stocks up to where the price discounts 5-10 years of future cash flow. Just a few days ago an analyst on CNBC was said "there is no stock out there that is too expensive". I didn't see the segment, but I understand it was said in all seriousness.