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

To: Johnny Canuck who wrote (37790)	7/24/2002 10:00:14 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67946

Stocks Still Too Pricey? Two Years Into A Bear, P-Es Say Yes To Some BY CRAIG SHAW INVESTOR'S BUSINESS DAILY More than two years into the worst bear market most investors ever lived through, you'd think stocks would at least be cheap. Some say they are, others say not. It all depends on whether you look ahead or behind. The standard measure of stock value, the price-earnings ratio, shows the S&P 500 index is pricier than it was at the peak of the tech bubble. But a different model that looks at interest rates and expected earnings says stocks are as cheap as they've been in 20 years. The difference isn't academic. Rattled investors won't jump back into the market until they think stocks are a bargain. That means the 28-month downturn could grind on a lot longer. "If the bear market is to bottom, it would be the first I know about where the bottom occurred with less than good values," said Marsh Douthat, president of Atlanta-based Financial/Market Management, a money manager and newsletter firm that runs $110 million. The overvaluation camp argues the tech bubble inflated stock prices so high that they're still not cheap even after the worst decline in half a century