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To: donald sew who wrote (51263)	8/31/1998 7:24:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 58727

P/E's... Don: At the worst point in the early 70's BEAR the P/E was in the 6 range... In the early 80's the P/E was about 11... Jim

To: donald sew who wrote (51263)	8/31/1998 7:25:00 PM
From: HairBall	Respond to of 58727

Donald: I believe selling should intensify tomorrow! Message 5636460 Regards, LG

To: donald sew who wrote (51263)	8/31/1998 8:14:00 PM
From: Philipp	Respond to of 58727

Don: I do think there should be a bounce starting tomorrow, but who really knows now. A bounce tomorrow is extremely unlikely. Well, perhaps at the end of the day after a bloody massacre. The average historical (trailing) P/E on the SP 500 is around 14/15. So at its peak the SP 500 was overvalued by about a factor of 2. If it were to become undervalued by a similar amount.... Well, I don't think that is realistic. Even after a significant correction, the market may still stay at historically high levels. The Western economies are still doing fine after all. There is no reason yet to become long-term gloomy. But one has to watch out. Good trading. Phil

To: donald sew who wrote (51263)	8/31/1998 8:21:00 PM
From: Dell-icious	Read Replies (1) \| Respond to of 58727

Why are the futures up??? Asian/Pacific markets are down 3%, and Europe will probably follow suit too. Besides if we open up, we are only going to sell into the rally and end up a few hundred points down. Is this some kind of trap that futures traders lure investors into? Dell-icious

To: donald sew who wrote (51263)	8/31/1998 8:34:00 PM
From: Mr.Manners	Respond to of 58727

Don, Any particular reason why you feel there should be a bounce? Things can change overnight as you have said - and who knows who will step in with what quote to further spark or dull the markets. Futures at the moment +7.00 Do you see any rally? Or would you see it crunched by margin calls and fear? I agree with your focus on the P/E. In fact was watching WFC among others for that today.

To: donald sew who wrote (51263)	8/31/1998 10:49:00 PM
From: Dwight E. Karlsen	Respond to of 58727

don, today seems a bit overdone. must be a lot of the same ones that lofted the S&P, Nasdaq, IIX, MSH,etc to idiotically overvalued levels in July are the same ones pulling the plug now. I and many others were incredulous to see stocks run up to that Everest-style peak in July, considering that S&P earnings had increased only 1.6% for the first half of 1998 over the first half of 1997. I held my puts through the entire July runup, but after suffering greatly, bailed out for break even as soon as the MSH decended the first 70 pts. The market insists on acting irrationally on the upside as well as to the downside (as it is becoming evident). Even though I'm personally losing money, I actually have a sense of relief. I predicted long ago that it would be a long hot summer due to the market's tendency to get irrational to the upside, and it looks like that's happened. Dell is still overvalued, IMO, given it's 3-year growth prospects. Ditto for CSCO.