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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (33176)	11/6/1998 11:18:00 AM
From: HighTech	Read Replies (1) \| Respond to of 94695

I read somewhere (about a month ago when S&P P/E was around 28) that if you took the top 14 cap-weighted companies out of the S&P, that the remaining stocks had a P/E of about 16. Don't know the accuracy of this but if it is true, what bubble? HiTech

To: Cynic 2005 who wrote (33176)	11/6/1998 11:40:00 AM
From: John Carson	Read Replies (1) \| Respond to of 94695

MMV, "It happens - usually, in recessions and bad economic times. Since we are in the midst of the "worst economic crisis in 50 years" I think PE of 30 is pretty low." The thing is we are now at the end of an 18 year bull market and we are not in a recession. Actually we have almost ideal economic conditions, 4.6% unemployment, 1.8% inflation, 3% GDP. There is no way you can justify a PE of 30 on the SP 500 under any conditions. It is only a matter of time. When Greenspan is forced not to cut (because market is too high) on the 17th it may be bubble popping time. John Carson