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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Amots who wrote (79789)	7/9/2001 8:07:23 PM
From: LTK007	Read Replies (1) \| Respond to of 99985

<NV and AS. So when its a good time to judge stocks by PE's???????? > Amots, NV and AS travel in a land i shall never understand,i doubt you will get a sensible answer to your question from them.max

To: Amots who wrote (79789)	7/9/2001 10:25:51 PM
From: epsteinbd	Respond to of 99985

The times for judging companies by low P/E will be over in a year. The P/E will never go back to their levels of the last roaring twenties years with their light, short lived, and almost beautifull recessions. Time and technology have changed the world, or more importantly, people's perception of the future and the tools and means we have. So the P/E(s) will climb back to higher numbers after the economy recovers, a fact that the general investor will gladly accept as soon as he has enough time to become used to it. A median P/E, that it the lowest of the present doldrums + the former high/2, should become quite normal, provided the company know its job and is generally considered to have a bright future and management. We all look ahead and forget the past. Who remembers the past times of the election aftermath, we lived it sensing it would almost never end, or that consequences will be felt in long term. Time magazine front page displayed 2 inched letters "CHAOS". By now, we shlould be in hell. And we shall have the P/E phenomenon with the citizen's debt. The percentage won't go much lower, if at all, and within years, they should even climb. Do the economists have any other alternate solution on how to get us out to a brighter future...? ( besides Greenspan's "productivity growth" which, up to now hadn't done the job, and will not. So the US wages will stay quite strong, as to service the debt and keep the Big Machine running at the fastest possible speed just below the clouds of inflation ; and everything will be fine till the next big puke, sometimes in 2007 (+/-1). Beautifull life ! There is only one problem : the show is a bit late to start and is not supposed to open before the second half 01 Epsteinbd