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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (43684)	6/20/2001 1:31:21 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 54805

UF - I think we have found the views of the pundits to be very (maybe more than one very) misleading. Or we are dangerously forgetful. Please do your own calculation, as follows. Add up the earnings (GAAP, not "pro-forma", because chickens can't fly forever) both plus and minus for all NASD companies. Divide into total market capitalization of those companies. That is the P/E ratio of NASD for example. It's high. Normally I do my own research and post eye-glazing details. But this one's a lot of work and I lost the link to one done in April by someone else. However, since then I am estimating that earnings have not risen proportionately with prices so I'm not uncomfortable that the conclusion holds. My CCFD reference was too indirect, let me clarify. I have nothing against writing covered calls in a neutral or bullish market. Except to point out that puts are a better utilization of capital, and don't come with the burden of having to own the stock :) My point was there are a lot of folks whose only hope of reaching break-even in the next lifetime is through covered calls. As to geopolitical forces? Fed funds and liquidity? Must look outside US only scope of vision. This isn't the thread for such a discussion, I encourage you to lurk CFZ or Financial Collapse Moderated plus links from there. A few folks on CFZ really have their $tuff together. I think like you do that tech is more pervasive. I am not yet convinced of increased productivity (macro, not micro). Here's you and I debating with each other while we might otherwise be doing something to increase actual food, shelter, clothing... Hmmm... John.