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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (4459)	8/27/2001 6:34:59 PM
From: Wayners	Respond to of 33421

If P/Es work then the Dow P/E has always traded in the same low-high range going back to the 1800s right and its as simple as buying at the low end of that range and selling at the high end of that range right? vbg.

To: MulhollandDrive who wrote (4459)	8/27/2001 7:16:13 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Hi Mrs. P, the question is do we see a sell off in price, or a longer sideways correction in time to reduce the PE Multiples. Also we have to consider and try to anticipate just how valuation shy, investors have become. In 1996 or 1998, it looked like everyone would choke on the high multiples and price valuation parameters that were being set, but the market was able to shortly turn around and head to even higher valuation levels. Take a look at the PE levels and Book Value Levels that were present in 1974 and in 1982. Very interesting reading. Message 16265030 John