Stock Market Rally?

Mike AI · 11-04-2002

Is it time to put money back into market? 5 weeks of possitive growth. Interest rates at all time low.

I have been on the sideliness for awhile, and just like picking the top, picking the bottom is hard. Is it time to start re-investing again?

MattK · 11-04-2002

I don't think it's time to buy yet. This rally is based on
companies beating already lowered earnings expectations,
plus a lot of people still think the fed can help the economy by
lowering interest rates.

prudentbear.com is a good site
for articles that go against the perma-bulls.

11-05-2002

I don't know what the good news has been that makes the stock market go up.

People are saying Whoopee, they beat the earnings estimate. This is after the bar has been lowered several times.

Yet the PE of the S&P 500 is over 48. This is way over valued.

Almighty Colin · 11-05-2002

Cameraman, marketwatch.com has the SP500 PE at 34.06 (still high)

Where did you the 48 figure?

Last edited by Colin at Nov 5 2002, 09:33 AM

wig · 11-05-2002

Too bad none of the factors listed have any consistent correlation to market action.

Almighty Colin · 11-05-2002

I wouldn't expect to find correlation.

There is hardly any historical context for a 30+ PE.

The S&P briefly went over 30 for 2 months in 1929. The next time was 1997.

Some would say that means we're in the midst of the biggest bubble in stock market history.

Others would say that people now give a higher valuation to companies relative to earnings.

Will be interesting.

slavdogg · 11-05-2002

http://story.news.yahoo.com/news?tmpl=stor...satoday/4591520

Winetalk.com · 11-05-2002

Quote:

Originally posted by wig@Nov 5 2002, 11:46 AM
Too bad none of the factors listed have any consistent correlation to market action.

MikeAI,
where have you been when it was 7500 on the Dow?
;_))

ask where wig and me were
;_))

Mike AI · 11-05-2002

Thanks for the help guys!!!

11-05-2002

Colin--At close of business Tuesday, Nov 5th S&P 500 PE is 49.53 !!

S&P 500 = 915.39
S&P 500 Earnings as of June 2002 was $18.48 per share

This number is the core earnings number from Standard & Poor's Earnings Page

Read this article in Business Week and you will see how American companies are still trying to fool the investor with inflated earnings.

I don't undertand how anyone could invest in something when you can't believe the numbers.

11-04-2002	#1
Mike AI Administrator Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 11,618	Is it time to put money back into market? 5 weeks of possitive growth. Interest rates at all time low. I have been on the sideliness for awhile, and just like picking the top, picking the bottom is hard. Is it time to start re-investing again? __________________ Make big money on your Domains! Why wait 40 days to get paid with the other guys? Parked.com pays the most for your traffic, and cuts checks twice a month!

11-05-2002	#4
Almighty Colin Members Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 8,059	Cameraman, marketwatch.com has the SP500 PE at 34.06 (still high) Where did you the 48 figure? Last edited by Colin at Nov 5 2002, 09:33 AM __________________ Almighty Content. Your one stop for live content. Secret Friends, LATINA Secret Friends , My Cam Friends

11-05-2002	#6
Almighty Colin Members Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 8,059	I wouldn't expect to find correlation. There is hardly any historical context for a 30+ PE. The S&P briefly went over 30 for 2 months in 1929. The next time was 1997. Some would say that means we're in the midst of the biggest bubble in stock market history. Others would say that people now give a higher valuation to companies relative to earnings. Will be interesting. __________________ Almighty Content. Your one stop for live content. Secret Friends, LATINA Secret Friends , My Cam Friends

11-05-2002	#9
Mike AI Administrator Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 11,618	Thanks for the help guys!!! __________________ Make big money on your Domains! Why wait 40 days to get paid with the other guys? Parked.com pays the most for your traffic, and cuts checks twice a month!

11-04-2002	#2
MattK Members Join Date: Oct 2002 Posts: 97	I don't think it's time to buy yet. This rally is based on companies beating already lowered earnings expectations, plus a lot of people still think the fed can help the economy by lowering interest rates. prudentbear.com is a good site for articles that go against the perma-bulls.

11-05-2002	#3
cameraman Guest Posts: n/a	I don't know what the good news has been that makes the stock market go up. People are saying Whoopee, they beat the earnings estimate. This is after the bar has been lowered several times. Yet the PE of the S&P 500 is over 48. This is way over valued.

11-05-2002	#5
wig Members Join Date: Oct 2002 Posts: 1,248	Too bad none of the factors listed have any consistent correlation to market action.