Disguised as a strategy topic - I'd like to also pose the question to be discussed in this thread.... why do we pay price multiples? As I mentioned in another thread, it has always seemed ridiculous to pay multiples of earnings. Historically this multiple is around 12. I ask you - does anyone pay you 12 times what you generate in earnings? I have been using P/E in this bear market to filter shorting opportunities. This has been a value driven market for 2 years now, and P's have dropped with E's, especially those companies with no E's. But my selections haven't been limited to tech stox. By and large I have shorted successfully NYSE stox. Ridiculous price multiples are there too. Stocks like GE and GM have been excellent candidates. Well, four months ago they were when their P/E's were out of line. Anyone else using this fundie?