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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (14755)	7/13/2001 6:49:04 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 42834

geode, imho, the indication that we are at a bottom is when stocks trade at a valuation near or below the risk free rate of return given reasonable expectations. msft's operating earnings are DOWN yoy and it trades at a 40 pe. that is a 2.5% return on a shrinking principle. of course, the market looks forward, but the future doesn't look bright and the trend is flat to negative. would you put your dough in an account that paid 2.5% and decreased your principle a couple % with no risk? well, people buying msft are doing this except they take on risk, to boot! valuation is EVERYTHING.