pauleckler: 'CAT may already have bottomed for this cycle'

Peter Lynch : Beating the Street
""With most stocks, a low price/earnings ratio is a good thing, but not with cyclicals. When the p/e ratios of cyclical companies are very low, it's usually a sign that they are at the end of a prosperous interlude... Soon the economy will falter, and the earnings of the cyclical will decline at breathtaking speed. As more investors head for the exits, the stock price will plummet. Buying a cyclical after several years of record earnings and when the p/e ratio has hit a low point is a proven method for losing half your money in a short period of time."
http://www.fool.co.uk/news/investing/investing-strategy/2010...
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