Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: sun-tzu who wrote (194472)	10/1/2002 7:46:26 AM
From: sammaster	Read Replies (3) \| Respond to of 436258

WOW, sanity by a big house "JP Morgan Securities strategists are setting a year-end 2003 target of 800 for the S&P 500 stocks -- that is down 15 points from Monday's level -- on expectations for weak earnings outlooks and the potential for compression in multiples. The strategists said the target implies the market priced at multiple of 25.8 times 2002 reported earnings and 23.5 times on 2003 reported earnings. It's recommending asset allocation of 50 percent equities, 30 percent bonds and 20 percent cash. "The U.S. macro backdrop remains weak, with few signs of a sustained recovery in the making... capital expenditure recovery is likely to remain weak owning to a sluggish economy and a still-negative free cash flow position," it said. "Even after three years of bear market and some multiple contraction, we think equity valuations remain stretched."