When I talk about dotcom mania I talk about the people who thought Akamai at $330 (that's right) was as good an idea as Cisco at $80. In 2000 I thought they were both far too expensive and I didn't buy them. I think that Cisco is cheap today at $13 and that Akamai is still too expensive at $1.25. Yes, but it has nothing to do with the true value of stocks, as perceived value. Sentiment is down, so stocks will continue to be a poor investment for a while, unless of course, we win the war quickly and efficiently.
I agree - stocks will limp along, even given a swift and decisive victory in Iraq. Growth has to return to the larger economy first and there are no signs of it.
However, if Cisco gets down below a 20 P/E again, I will buy some in the secure knowledge that when the economy turns around, it is a guaranteed 30 P/E stock.
But there is no way I am allocating serious capital to any equity right now.