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To: Jeff Jordan who wrote (1165)	1/10/1998 10:11:00 AM
From: Oeconomicus	Read Replies (1) \| Respond to of 164687

Jeff, unfortunately (IMO) it won't stop until people stop spending the weekend deciding what "bargains" they want to pick up, thinking that everyone else is just panicking and that the market will surely recover like every other time the last 15 years. Maybe it will bounce a little on Monday. I'm sure there are a lot of folks thinking the same thing you are. But I don't think the economic environment is right this time to sustain the kind of quick rebound we saw last fall and last spring. PEs will not stay at 23+ with earnings growth in the mid single digits (and that may be optimistic if we get a recession). PEs will likely contract at least below 20 and maybe to the 17-18 area (that would only be a 25% or so bear move). Bottom line IMO is that unless you are only trying to play a short term "oversold bounce", stick to cash or the middle part of the yield curve. Have a good weekend. Bob