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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (4150)	11/18/2001 4:40:55 PM
From: Davy Crockett	Respond to of 36161

Your welcome:) Lifted this from Zeev's thread Message 16673750 LUV this We are currently being told that the market "sees" a "V-shaped" economic recovery early next year and is therefore anticipating an earnings recovery. The problem with this assertion is that there is virtually no evidence to support it, so exactly what is the market seeing? I think it is seeing the world through the same rose-colored glasses that got us into this valuation bubble in the first place. On Thursday the S&P 500 was at 1142.26 and had a P/E of about 31. To return the S&P to fair value (P/E = 15) would require a price decline to 551.00, or for earnings to double, or some combination of the two. To assume that prices will continue to rise while earnings deteriorate or go flat, is irrational. I repeat once more, in the last 60 years there has never been a case where a bear market has ended with valuations at record highs. Bear markets are supposed to correct this kind of excess. So far, this one has not. & this... I think I get it. To make a profit we just keep pulling out expenses until income minus expenses equals a positive number... Quote attributed to Carl Swenlin Regards, Peter