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

To: John Pitera who wrote (4638)	9/20/2001 3:00:23 PM
From: Doppler	Read Replies (1) \| Respond to of 33421

often bottoms in price when the stocks sell for about 1 times sales. when the S & P 500 sells for 80% of book value, prices have gotten cheap and it's a good time to buy for a secular bull market Any idea what these two values are right now. Thanks

To: John Pitera who wrote (4638)	9/20/2001 5:24:44 PM
From: X Y Zebra	Read Replies (1) \| Respond to of 33421

An important aspect of whether companies, and assets are a good value, depends upon the quantities of Money in the economic system, as well as the holders of the Liquidity (Money) have to have the desire to spend it on companies, and assets that they believe will earn a higher rate of return. That's one issue that several have mentioned recently, that the banks can have more money to lend and at lower rates, but it does not help, the debt laden businesses that are excluded from borrowing it. Quite true. Given the current environment, not only the holder of money, will not want to take a risk that would not be supported by an extraordinary reward. With such knowledge and the power of cash in his/her hands. He can afford to wait until such value is reached. The more time goes by... the more desperate the conditions of assets can become. if 10 companies are for sale, it means that there is too much supply for what ever they are producing. Ah yes, the old law of supply & demand. But that does not mean that lots of money were not made buying the market in May of 1970, so long as one sold the following year or so. True... or even scalping it on a day to day basis... sand & gravel can eventually form small mountains. While building cash for the eventual "big bang"...