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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: vampire who wrote (11105)	2/14/2001 10:10:16 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 30051

Metsin, some DOW stocks are selling at very irrational PE's, take KO at a PE of 70 (like CSCO). I a real bear market, when the "generals" finally give in, you may see a KO at $15/shareMRK could go to the low $50', BA to the $30' and even CSCO and INTC may still have a lot to give in. I don't think it will happen this year, but once the Fed's are forced to change direction again and increase rates, and if they can't engineer a soft landing in a future contraction, that is not "impossible". In traditional bear markets (of the 70' and as late as the August 82 bottom) the PE of the S&P has gone under 10. Zeev