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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: poodle who wrote (13863)	9/20/1998 11:54:00 PM
From: Joey Two-Cents	Read Replies (2) \| Respond to of 18691

If all was well with the world, I would say a PE of 19 is the most I would pay when the Long bond yields 5.18% (100/5.18 = 19)and a company is growing at 19% per year (I would buy only those stocks whose earnings growth rate is higher than its PE). That said, with the 3Q earnings projected to between 2% and -3%, Asian/Russian/South American crisis, Slickster, Y2K, Iran/Afghanistan border dispute etc. I would guess a significantly lower PE is justified. How low? Who knows?