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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (15024)	8/2/2002 12:08:14 PM
From: sea_urchin	Read Replies (1) \| Respond to of 82336

Al >Since we know that P/E ratios were not useful at the top, when people knew that the market had been overvalued for years, why would anyone continue to use this number as any form of timing or even analytical tool is beyond me. That's an easy one. When the market is in a bull trend all people are concerned about is momentum and the self-fulfilling prophesy that, when one buys, the market goes up. Of course, this is justified by the myth of future profits. When the market falls and the upward momentum is broken then people look for any reason that can break the fall. Earnings are one of those reasons, but, now there are no earnings because no-one knows what to believe. That's why people are so cross with the CEOs & Co because they took away the parachute.