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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Brendan W who wrote (13016)	9/2/2001 4:29:24 PM
From: jeffbas	Read Replies (1) \| Respond to of 78744

Brendan, if you look only at P/E's, you would never buy a stock in a recession. Earnings are supposed to evaporate and P/E's rise in tough times. I also doubt that folks who bought stocks like LPAC this year are complaining about lack of opportunity.

To: Brendan W who wrote (13016)	9/3/2001 1:34:52 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78744

Not a bad plan to raise cash in names you no longer have confidence in, IMO. Tax loss selling should offer some good bargains over the next 4 months and there's a good chance a loser will drop further as people sell to capture losses. Better to be an early seller than a later one. I'm not finding a lot of what I consider lay-up investment buys, either and would agree that the S&P is probably still over valued based on adjusted earnings even with lower discount rates. That said, I agree with Jeff Bash that PE can be a flawed guide to value when earnings are under pressure. Nearly every business has cyclicality, and high PE on busted earnings is often indication the market has discounted the worst of the cycle.