Replies to post #115257 on Biotech Values

[jbog]

OT BioTechHedge,


In Jul 2000 the S&P hit the mid 1500's and we determined we were in the 'internet bubble' and the S&P proceeded to drop into the upper 700's over the next 30 months.

In Oct 2007 the S&P revisited the mid 1500's and the 'housing bubble' crashed send the S&P back into the 600's (for two days) over the following 18 months.

My main point isn't that the S&P can't continue upward from here, but more that it only gets into this pricing neighborhood by being driven here by a bubble. Once we realize this and when our current balloon breaks we'll see history play itself out all over again.

good luck

[n4807g]

OT:

when the NASDAQ as thousands of points higher, the P/E of the NASDAQ was over 100. Now, here we are much lower, and the NASDAQ P/E is only in the high-teens

True...however you should consider the state of fiscal affairs and FED policy when considering the future . Do we risk an uncomfortable economic surprise at some point?