Zeev's Turnips Patch-No Politics (ZEEV)

[punkle]

The Intel news today was good news for Intel and potentially for some other companies in their space. However, I believe the market must start looking at evaluations, specifically todays P/Es vs. historical averages. Even Intel is pricey here at a 50 P/E despite the 5% increase in guidance.

We've had a 60% run off the October lows with no real pullback. Any big piece of bad news could easily get the ball rolling to at least get us back to historically average P/Es. I think the recent weakness in the S&P may be a sign of evaluations coming back into the forefront. This could come as a shock to folks in the face of this good news.