To: long-gone who wrote (61395 ) 11/28/2000 1:11:15 AM From: Rarebird Read Replies (1) | Respond to Equity Outlook:(short-term) remaining targets; hence anything that occurs here (barring of course a full Constitutional Crisis that would have risks of pushing the Global Economy into a severe Recession or worse) would generally be a completion of an extended downside capitulation. As earnings drop, and prices fall, one should start anticipating the opposite movement in markets.not intelligently informed about history; because as earnings slow, and prices decline, of course PE ratios go up, not down. In fact, at the lows of many bear markets (outside of total Depression, where profits and prices are generally near zero) you will see many argue that stocks aren't a buy yet, because PE's are too high; well, they'll usually be highest right at the lows (this is particularly so for big-caps). That's why it's nearly impossible to correlate bottoms with PE ratios these days.
