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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: kvkkc1 who wrote (60895)	8/8/2002 4:51:35 PM
From: OWN STOCK	Respond to of 77400

kvkkc: All current prices in the market are higher than historic. That's because there is a lot more money in the market than there used to be: the individual investors and his/her retirement money to name one source. Still. The old rationale that PE had to be 20 for your investment to pay back in 20 years no longer works, if it ever did. IMO, that was a crock. Prices are always supply and demand, period. Demand for equity is still high, that's why PE is high. In fact, just to prove PE is not a rational metric, P is positive when E is negative. And PS was never a metric, as S without E is just stupidity. PC may be the metric of choice, but C can evaporate instantly in a "revision" these days. It's just supply and demand. The market has only two directions: down and up. The next question is: when will prices stop going down? Not until most of the cheating is out in the open or cleaned up, and that will not be until the end of the year at the earliest. Many many companies inventing stalling tactics: new CEOs, new COO's, M&As, major re-organizations, etc. Any excuse to be able to say: we cannot sign given the circumstances. Smart investors will see through all that smoke and delay, and stay clear. Market will punish the bad boys....eventually. Smoke and delay will time out. Then there will be some time needed to rebuild confidence: three quarters at least. Then solid recovery will be had. Buy lower, sell higher. JMHO -Own