Did you guys miss all those studies showing that low PE stocks as a group outperform high PE stocks over time?
Perhaps what you're saying is that buying a cyclical stock with peak earnings and therefore low PE isn't the best strategy.
IT
It's just a rule--Beware the low multiplier of high earnings. That fits cyclicals nicely. Others too. But just because low P/E's outperform high P/E's over time, doesn't mean that you won't bite a hog in the heinie blindly buying low P/E's.
I know, I did a few.
Mark