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#11 OEXCHAOS

OEXCHAOS

    Mark S. Young

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Posted 04 January 2007 - 02:49 PM

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

Mark S Young
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