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

To: Mike M2 who wrote (16704)	3/9/2002 3:23:03 PM
From: AC Flyer	Read Replies (4) \| Respond to of 74559

Hi mike: I agree with you that P/E ratios are extraordinarily high. The question is, what does that mean? It could mean: (a) sooner or later, we will have the mother of all market collapses with dreadful consequences for the real economy. It could also mean: (b) the market has the wind at its back, with high demand for stocks from baby boomers, extraordinarily low interest rates and the expectation of very significant earnings gains coming from powerful growth in the real economy over the next couple of years. If you'll excuse me for making assumptions, you are probably more in the (a) camp. I'm more in the (b) camp. My dumb-ass, brain-dead 100% long boring old economy value portfolio was up ~28% last year and it's up ~6% so far this year. Maybe it shouldn't be, but it is. Whaddya gonna do?