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In the first quarter 2008 I suspended my stock screening activities looking for deep value based on trailing and forward earnings. Past earnings have no meaning in the current environment and published forward earnings estimates are currently "wish lists" and are unlikely to reflect informed assessments. In the same vein, many book values are suspect (obviously for financials, but possibly elsewhere as well).
Oct 08 10:38 am
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All Comments by John Lounsbury »Never Enough Lessons on Forward P/E [View article]
My strategy since the beginning of the year has been to look for a baby in the discarded bathwater where earnings and assets may be understood well. I haven't found much and have had to resort to holding cash and doing some short-term trading.