Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: Topannuity who wrote (1965)	2/24/2001 12:24:07 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 2103

I assume you are using forward earnings in that calculation to get it that low. Since no one knows what they are going to earn this quarter much less over the next year, I would argue that a trailing PE should be used. After all that was what was used for hundreds of years until this new pair of dimes was declared. People keep forgetting that TRAILING PEs are what the market used until the 99 Bubble but that doesn't allow the bullish views that so many want to see. <ggg> The old rule was buy Trailing PE 13 and sell trailing PE 18. Good Luck, Lee

To: Topannuity who wrote (1965)	2/24/2001 2:40:04 PM
From: James F. Hopkins	Respond to of 2103

Hi Top; Well it's not all a P/E game , I tend to think markets trade more on liquidity than earnings, and that the way they do earnings is to try and make that curve fit or justify the price. I try to look outside the P/E thing for indicators. However if we are to look at p/e it will be the Largest Cap stocks that will influence the index the most, and we still have some of them trading with at high p/e. ----------------------- We should get a bounce but if liquidity don't get better fast & being we set a new low we could wind up in a melt down after the bounce. I'm not saying we will but the possibility is real enough. Markets tend to go to extremes once they tip beyond reason, panic has to have it's say ..at the top it's always shorts who panic buy. or are squeezed, at the bottoms it's the bulls who sell to cover margin calls. Jim