Forum Archive Index - December 2000

["hugh webber" <hugh.webber@clear.net.nz>]

Here's a quote from off the Bloomberg Internet site
this morning: 
" Nasdaq stocks now trade for 91 times recent profit, down from 401  
 times at their high March 10, while S&P 500 stocks trade for 24    
 times earnings."

According to the Press last Saturday the mean (average) P/E 
on the NZSE was 14.09.

As an investor which country would you rather be investing in?
NZ, everytime. And note that NZ fell rather less than anywhere
else yesterday....why? Because we're on solid ground.

The implication to me is that the NASDAQ could yet fall to
about a quarter of what it now is.
There should be a discount for uncertainty, instead the 
NASDAQ has a premium for it. Stocks that have an inbuilt
heavy assumption of unrealistic success when they don't
even have any profits, or dividends, and are suffering from 
a terminal cash burn rate....
Stocks such as Amazon.com which had an assumption
that more than the US's entire future sales of books & in
10 years time would be funnelled through them....
Business to household stocks which assumed most 
future shopping would be via the Internet rather than shopping malls...
Momentum investing....just how sane are some people?
Why don't we just go outside and burn our money on the street.

cheers,
Hugh                                                     




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