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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: tradermike_1999 who wrote (2844)	4/5/2001 3:43:19 PM
From: Tommaso	Read Replies (1) \| Respond to of 74559

Because earnings dropped even more than the prices of stocks in some cases as the Depression developed. Earnings contracted to such an extreme that even at very low prices, stocks still had high P/E ratios. At least that is what I recall reading.

To: tradermike_1999 who wrote (2844)	4/5/2001 10:36:35 PM
From: TobagoJack	Respond to of 74559

Hi tradermike_1999, come clean and out with it ... the reason you did not bother arguing about the PE ratio is because you know, as most folks on this thread also know, backward or forward looking PE ratio is simply not relevant during inflection points for the E and psychology driven P, and that the then relevant measures are free cash flow, debt service ability, state of broader market liquidity, and confidence in the soundness of the financial system. You did not make the point you know so well in your heart because you are too kind. Chugs, Jay