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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (11337)	3/25/2002 2:30:36 PM
From: Petrol	Respond to of 19219

They only "appear" to be bottoming because analysts have reduced expectations so much. They're not even close to bottoming.

To: David Howe who wrote (11337)	3/25/2002 7:35:07 PM
From: lifeisgood	Read Replies (1) \| Respond to of 19219

<< 3. The current market bubble will burst just like it did the last time PEs were this outrageous (Spring, 2000) and the resulting 50% haircut will bring the Comp to around 1000. >> But in the spring to 2000 earnings were peaking out and set to plummet. Now, earnings are bottoming out and are set to spike upwards and begin a new growth cycle. Do you see the differences between spring 2000 and now? Dave Of course at the time you didn't know that earnings were bottoming out. Indeed the analysts were projecting phenomenal earnings growth that never materialized. Sound familiar? It should. That's exactly what analysts have been saying every quarter since 12/00. So the only difference I see between then and now is we're about 60% lower on the NASDAQ. Other than that, it looks pretty much the same (i.e., extreme PEs, outrageous predictions for growth and earnings that never materialize, market gains on hope rather than any realistic projection of fundamentals). best... LIG