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Non-Tech : QQQ - Nasdaq 100 Trust -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (647)	8/14/2001 1:34:59 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 840

Hi John, People are paying much closer attention to all forms of valuation now than 16 months ago. This is typical of a market of contracting valuations. Whether we view Price/Earnings, Price/Sales, Price/Book Value, etc. everyone today is only willing to pay a much lower multiple than a year ago. Historically fundamentalists thought we shouldn't pay much more than 1X book value and should sell at 2X. Most of the Nasdaq 100 is probably still over 2X even after the contraction. Price/Earnings isn't as stable a calculation as P/BV as earnings are changing all the time. However P/E is still probably first on investors' minds when they start to think about fundamental analysis. Best regards, Tom