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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (55086)	9/19/2001 5:18:40 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 94695

Vi, the volume was low and was getting lower until the shock of recent events caused panic. Without the attack, I think we would still be drifting on ever lower volume. But then we'll never know, will we? BTW, you keep saying you are waiting for "stocks to be cheap". How do YOU define "cheap"? It is interesting to note that the PE on S&P 500 "as reported" (i.e. GAAP) EPS is 27 with the index at 1000. That's after three straight qtrs of declining earnings, including a "everything AND the kitchen sink" write-off last quarter. This PE is within 1 point of the earnings trough PE coming out of the last recession. On an operating basis (S&P's numbers, not Goldman or other "proforma" fluff), the PE is 21, which is a fraction of a point BELOW what it was at the end of 1991. Interest rates were higher then, too. Bob