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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (1301)	2/22/2001 6:07:52 PM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 12411

John, not much of support lines for the SPX here either. Had the 1994 support, broken 1375ish in late November. Then only some peaks and throughs, horizontally: 1190-1215 and 920-980. Watching the multiples also. As prices are lowering at a par with earnings, I am not certain that the multiples are lessening, anyway not as fast as expected. 12 to 14 P/E's are, IMHO, a "good" price for a business (If I were to buy a business for my own, I would pay either 1 time sales, or 5 times profits). IMHO, S&P is stll at least 2 times overvalued, Nasdaq 3 to 7 times overvalued. I miss an URL that was posted on SI some days ago. It showed the amount of money in the equities market compared to- was it M2 or DGP, does not maters, as it only was a relation - ..? Anyway, were the same factors as above, more than 2 times too much. Supply & demand, shares are still far too overvalued. So, work off the excesses, well, err... I come to the same targets if I apply a compound 8%/yr. yield trendline to major cycle bottoms. But this is Old Economy and I never bought the Mew Paradigm. <g>