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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Chris J. Horne who wrote (11841)	2/10/2000 5:05:00 PM
From: Justa Werkenstiff	Read Replies (2) \| Respond to of 15132

Chris: Re: ". Right now, the demand is up due to the baby boomers buying. It does not seem appropriate to me to think that traditional PEs mean anything." Boomer are only buying tech. today. Nothing else matters and the price is irrelevant currently. But 70% of the S & P 500 is sucking wind. What you have here is everyone migrating to the winners to take a ride on the momentum side. So one either plays in the arena of the greater fool or stays away from the crowd and waits for sanity to return in that sector.

To: Chris J. Horne who wrote (11841)	2/10/2000 7:03:00 PM
From: Hank Stamper	Read Replies (1) \| Respond to of 15132

"It does not seem appropriate to me to think that traditional PEs mean anything." I just have a hard time wrapping my mind around this. If historical P/E does not "mean anything," then: 1. What about the Japanese stock market crash and long term bear market? The 'not mean anything' logic says that earnings played no role in that market. 2. What does "mean anything"? I.e., what is the 'modern' (post-modern?, Derrida anybody?) means of valuing stocks? The only way I can think of addressing my questions is to refer in great part to traditional and historical means of placing value on individual stocks and markets. But my thinking is pretty much old era. Ciao, David Todtman