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 : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Lars who wrote (970)	9/13/1998 11:43:00 AM
From: Sonki	Read Replies (2) \| Respond to of 15132

from Zacks: Despite today's strong gains, analysts nonetheless continue to lower their earnings estimates for the 3rd quarter. Earnings growth estimates for the S&P500 this year are at 6%, and 5.9% for 1999, compared with 10% last year, and are widely expected to drop further. question to bob, if any one can get thru with decling earning growth rate why should market be valued at 21 or 24 pe? i.e. if growth was expected to be 10% and we traded 21pe aprox 2 peg. new growth rate now 5.9 or 6%, why would we not trade at 12-15pe of forward earning? he will say lower rates would justify higher pe. Naturally lower earning means we are going to have to put up w. higher foward pe. does his model take into account that financail sector is expecting 30% decline in earning next year. This secotr is 25% of sp500 index. -long spy. (accumlating...not buying)