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To: KeepItSimple who wrote (101073)	4/15/2000 6:30:00 PM
From: re3	Read Replies (1) \| Respond to of 164684

from gold eagle... @Eagle_Eye (Susej) --- mother of all depressions (DrDoolittle) Apr 15, 18:08 I submit that a Great Depression would NOT be forthcoming if the Nasdaq lost 90% of its Irrational Exuberant value as of a week ago. On April 3rd, the Nasdaq sported a P/E ratio of 208 per acclaimed market analyst, James Stack. In the event market sell forces continue, causing the Nasdaq to fall 90% from its 04/03/00 value (about 4500), its P/E ratio will still be a very hefty 21 times. I say 'hefty,' based on historical precedent. At the very peak of the 1929 Bull Market, the Dow sported a P/E of about 18 times. In the next 6 decades the Dow's average P/E ratio in bull markets was a respectable 14-16 times. ONLY in the "Naughty-90s" did P/E ratios defy the Law of Gravity. THEREFORE, the Nasdaq showing a 21:1 P/E ratio after dropping 90% is certainly NOT going to collapse the US economy. What it will do is to severely castigate those speculators who foolishly were discounting the hereafter in their market speculations. It will put a curb ON MARKET GAMBLING. It will reestablish logical investment valuation methods. Sanity will return yo the markets. But in ANY CASE, it behooves one to shun common stocks, and to build a solid portfolio of bullion, gold stocks and gold mutual funds and precious metal coins. And for the more aggessive, go short common stocks via a Mutual Fund (like the Prudent Bear Fund - which rose about 10% on Friday).