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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (3196)	5/30/2000 10:35:00 PM
From: vampire	Read Replies (2) \| Respond to of 3339

I'm not sure why you think a <7,000 Dow is so absurd. I'm not sure what the P/E is on the Dow but I believe it's about 25 on the S & P. Th historical norm is closer to 15. Now take into account the fact that just as valuations become (and became) out of whack in a bull market, the same holds true in a bear market (the pendulum always swings too far) and you now see that we don't need any of the phenomenon that you mention to see a serious bear.

To: The Ox who wrote (3196)	5/31/2000 9:02:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 3339

Some stocks are still priced at ten times what they are really worth, some at five times, some only 50% more than they are worth, and a very small number are priced in accordance with reasonable expectations of how the companies may prosper. I do not expect a 1932-style bottom where the average drop from 1929 highs was on the order of 85%. I would not be at all surprised to see a Dow at 7000 and the Nasdaq below 2000. It's pretty easy to look backward and say that the Nasdaq was too high at 5000. It wasn't so easy to say that three months ago, as some of us most emphatically did. And it does not improve discourse to use words like "moronic"--especially when the rest of what is said is studded with errors of grammar and diction.