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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (17728)3/15/1998 4:35:00 PM
From: Rich Uncle  Read Replies (1) | Respond to of 70976
 
If the market crashes it will be due to interest rates going up and
earnings going down so stocks which appear to be undervalued today may no longer be undervalued if this scenario was to occur.



To: Gottfried who wrote (17728)3/15/1998 11:21:00 PM
From: David Rosenthal  Respond to of 70976
 
GM,

>>>>>
If the DOW crashes, will way undervalued stocks that are near their lows be spared?
>>>>>

IMO: Some small stocks may be spared but most all stocks will take a hit. Undervalued stocks will become more undervalued. The bright side for them is that they should recover their pre-crash valuations more quickly then high PSR/PE stocks. I think this is the reasoning behind investing in stocks with low PSR.

Dave