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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Bill Cotter who wrote (36473)	3/18/2002 2:48:10 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 68045

Bill and Rts, Thanks for the chart links. In reflecting on the chart I am not as bearish as some of the authors that point to the high P/E as an indicator that the market is stating another bubble economy. Given that the P/E is a trialing indicator and the fact the revenue were exceptionally low in some segments due to the huge amounts on inventory in the channel, I can see that P/E coming down exponentially if the economy really does pick up. Given this back drop, the P/E maybe unreasonable high given the potential increase in earnings. That does not mean individual stocks are not over priced given their outlook, semi equip and construction stock come to mine. There are over stocks that are undervalued also. I still don't expect the economic recovery to be as soon as some analysts are expecting, but I think we should start to expand again after last year's artificially low production levels. If nothing else the year over year comparison will give the illusion of an economy coming off of a bottom and starting a new bull cycle.