Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (15171)	2/18/2002 10:06:52 PM
From: AC Flyer	Read Replies (2) \| Respond to of 74559

John: Thank you for an intelligent and balanced post. >>I think PEs are high because prices are outrageous and earnings aren't. Which we seem to agree implies that folks expect earnings to become outrageous.<< Yes, there is no other explanation for current PEs - stockholders expect healthy increases in earnings. It's a dichotomy. Either stockholders are out of their tiny minds and will get taken to the cleaners as prices fall by another 75%, or earnings will pick up very significantly over the next 12 to 24 months. I tend to the latter viewpoint thogh believe there is room for a middle ground (i.e PEs remain high as earnings improve).