bear market has become predictable, page-12

Deg, I'm assuming you bought into AFG when the PE was 1 and yield was 12%? Was that not great value? Or maybe you preferred the great value and attractive PE of BNB?

The problem with PE's in a bear market is the 'e' = earnings. Earnings are a fanciful number that can change at anytime regardless of share price or anything else for that matter. And beleive me, few company's are conservative with the earnings forecasts. I'd go as far as saying the bulk of them are totally unrealistic given what lays ahead.

As foretasted earnings are reduced (and they will continue to be in the years ahead), the PE of that particular company will constantly change giving PE's little significance.

If you're buying stocks purely on PE then you will be in big trouble if you're not there already.