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To: GraceZ who wrote (90779)	4/6/2001 3:57:33 PM
From: LLCF	Respond to of 436258

<My point was that the market doesn't have a normal valuation...period. Valuations are always in the context of the larger market. What is considered a reasonable PE in one time period is completely unreasonable in another. > Agreed, there is no hard science... and no one ever said PE was THE valuation method. <According to you and most everyone else on this thread it'll keep working until PE's are below the historic mean. > THis is incorrect... I do believe however that the valuations were/are high enough that cash will outperform for years. Look, that's what it's all about, you disagree, fine... buy all you want. <But what if, in the larger context, what we saw in the NASDAQ in the last year was a speculative correction rather than the start of a secular bear market?> Place your bets... I know this in incorrect because of the fundamentals... we've NEVER seen this in our lifetime. DAK