predict market to come back to 4500, page-6

The ASX has not really been overpriced but probably more fair value i.e. average PE's of 15 or so...where now they are around 12...BHP, RIO are about 10 now for e.g. I think and ZFX is 4 or 6 or something...not exactly expensive...

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0EB5CB9B%2DFFC0%2D44C7%2D9129%2DB808A3AA8207%7D&siteid=mktw&dist=

Calls that the market will drop much further are clearly exaggerated.....according to global experts....

G8 finance ministers upbeat on global economy
By John Ittner & Katherine Hunt, MarketWatch
Last Update: 12:28 PM ET Jun 10, 2006

SAN FRANCISCO (MarketWatch) -- Finance ministers from the Group of Eight leading industrial countries on Saturday remained positive about strong global growth despite the ongoing risks of volatile energy prices and rising interest rates.
Meeting in St. Petersburg, Russia, the ministers said in a communiqué that the global economy was gradually becoming more broadly based amid widening global imbalances. See full text of statement.
"We underline that global economic adjustment is a shared responsibility and reiterate our commitment to address global imbalances," the ministers said in the statement.
In their comments, the ministers stressed the overall strength of the global economy.
"As we look around the global economy today we see no major crises, no major economies in recession, we see strong growth, inflation well-contained, interest rates at the low end of the historic level and rising prosperity,'' Treasury Secretary John Snow said at a news conference at the end of the two-day meeting, according to the Associated Press. "That's a commendable, commendable set of results.''
German Finance Minister Peer Steinbrueck said, "People might try to point up certain risks and say the glass is half-empty, but the fact is that the world economic situation is very stable," the Wall Street Journal reported on its Web site.
The ministers reiterated inflationary concerns over high oil and commodity prices. They called for greater transparency and reliability in energy market data as a means of mitigating the volatility.
Prior to the meeting, French Finance Minister Thierry Breton said he would use the gathering to advocate for the international monitoring of data on oil reserves, with the help of all oil producers, because he believes "transparency is a key factor to reassure the markets."
The role of donor countries in financing development in low-income countries was mentioned high in the communiqué. "We urge all donors to take account of debt sustainability issues in all their lending practices and share fully information on their lending to low-income countries," the ministers said in the statement.
Also on their radar, the ministers called for vigilance in preparations being made for a possible avian-flu pandemic. They urged cooperation between countries in drafting contingency plans, including for the financial sector.
The G8 includes the U.S., Japan, Germany, Italy, France, Britain, Canada and Russia. Finance ministers are meeting in advance of the July summit of heads of state, also to be held in St. Petersburg. End of Story