Dollar hysteria and profit prospects

Washington Times ^ | Monday, July 1, 2002 | Bruce Bartlett

[JohnHuang2]

Last Tuesday's announcement that WorldCom Corp. understated its expenses by $3.8 billion over the last two years, thereby overstating its profits, is yet another blow to a stock market struggling to rise above its post-September 11 lows. Not only must investors deal with almost daily revelations about cooked books at major corporations, but they also have to figure out whether the economic expansion is for real or a temporary respite before relapsing into a double-dip recession.

[JohnHuang2]

Monday, July 1, 2002

Quote of the Day by Poohbah

[rohry]

"All other things being equal, the stock market should be a lot higher than it is now, given the underlying economic conditions."

Once I got to this part I discounted everything else he had to say. The stock market is woefully overvalued by any measure. Even if the economy and profits started growing at double-digit speed it would take years before the P/E ratios were where they should be.

[Mr. Jeeves]

Assuming there are no more terrorist attacks or WorldCom-type announcements, I think we should soon start to see higher profits at major corporations. Higher stock prices will quickly follow.

The writer is either a space alien or a brokerage firm shill. "Buy, sheep! We need the commisssions!"

[cibco]

BTTT