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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Saulamanca who wrote (57117)	7/24/2000 2:51:20 PM
From: The Ox	Read Replies (1) \| Respond to of 99985

I read somewhere recently that earnings growth from 94 to 99 for the NAZ/100 averaged around 25% per year during this period. 800 x 1.25 = 1000 '95 1000 x 1.25 = 1250 '96 1250 x 1.25 = 1562 '97 1562 x 1.25 = 1953 '98 1953 x 1.25 = 2441 '99 2441 x 1.25 = 3051 '00 3051 x 1.25 = 3814 '01 Using this chart, the Nasdaq is trading on expectations for next year and continued 25% earnings growth. With the Nasdaq at 4000, I don't see how this is so far out of line? Sure seems like we are pretty close to fair value! Just my opinion, Michael

To: Saulamanca who wrote (57117)	7/24/2000 2:54:24 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99985

Jim it is less important the absolute level of the NAZ but much more important are the sky high P/E ratios of the NAZ. No much has changed since 1994 to today, only now we buy a 299 PC to access the internet and most important stock ownership by the public is much higher than in 1994 and real saving almost if not negative. Haim BTW -- ATTENTION SI ------ why internet must be spelled with a capital I and the word telephone not?