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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (5498)	8/31/1998 5:36:00 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Dave, I can't imagine that the Value Line, S&P500 or even the Dow P/E ratios are going to do anything but shrink here. In last week's newsletter I mentioned that if the P/E of Value Line fell to 13.5 from its current 16.7 that we'd be back in the Low Risk area. A couple more days like today and we'll be there!! Even if earnings are flat for a year and the P/E contracts, my guess of a bottom of about DOW 6850 should hold. Harder to guess the Nasdaq. Best regards, Tom