5 replies to this topic

[greenie]

Check the table at the bottom of the article for a full list:

http://www.usatoday....king/mmw209.htm

[dasein]

Greenie, the bottom of the list shows old vs new economy stocks. this category always bothered me, but today, i think it is silly, or at least misleading. why say Dupont, UTX and 3M are old economy, when they have some of the most cutting edge tech products around, whereas MCI, for example is really just a phone company like SBC or ATT, and other tech stocks like Dell are in a commodity business. EK was hi tech, and it is rumored to be a buyout target (HPQ).

[OEXCHAOS]

I hear EK has some pretty sexy technology now too. (Disclaimer, I hold this in family and managed accounts) Mark

[greenie]

You may also read the article to understand the basis of his optimism. Oh, BTW, do not forget to check the date of the article either.

[OEXCHAOS]

You may also read the article to understand the basis of his optimism.

Oh, BTW, do not forget to check the date of the article either.

That's cute! I thought I had read about that calculus before! I was just too lazy to go back and check archives.

The article isn't all hooey, just misses some key points. Back in 97, I think Anil (old FFer) posited that the old ways of looking at P/E's weren't as meaningful because inflation was low and looking lower rates were low and growth rates were high. It was a sound thesis. Part of why I got Bearish in Dec of '99 was that rates were looking higher and inflation was rising and pretty much maximal growthrates for earnings were priced in. The unwinding of that discount is part of what brought about the Bear market.

Mark

[dasein]

sorry i missed your humor, Greenie! klh