The market is up .. to new highs on the large caps .. but even so, the
multiples are reasonable. No one would argue that 15X earnings is a
reasonable price for equities. In 2000, the tech stocks were at 100's X
multiples or even in triple digits with no earnings and no prospects for
earnings. It was insane. This is why the NASDAQ is still down 60%
from those highs. As long as earnings continue to grow allowing the
share prices to grow with them all while holding into the "teens" in
multiples, I am comfortable being long. If earnings begin to fade or the
market does get ahead of itself and the multiples rise into the 20's and
higher, I'll change my opinion. I hope you are doing well Ben ..
Bob
At 12:57 PM 10/25/2006 -0400, you wrote:
X-Yahoo-Newman-Property:groups-email-trad
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When the stock market is going up and all your stocks and
mutual funds are making money you feel like a genius. It is too bad that
some folks don?t remember what happened in 2000. Of course, right now we are
in one of those genius phases. Your broker and financial planner are
encouraging you to buy, buy, buy. And I can?t fault that at this time. You
remember back in 2000 how many times they told you to buy, buy, buy while
the market was going down, down, down. Are we in another of those periods
now that are leading up to a humongous crash? Hey, I don?t predict, but I do
listen to the voice of the market.
http://hyper-stocks.blogspot.com/2006/09/great-stock-market-secret.html
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