Our forecast for a 2006 P/E ratio of about 19 is reasonable given the profit outlook. These are not value stocks.

250

That is a low price for [such] high growth.

193

The best growth at a reasonable price is to be found in the emerging markets, where you have 15% earnings growth, just like in Japan, but multiples of only 10 or 11. We're expecting another year of double-digit gains in earnings.

180

Cyclical sectors are at high valuations, justifying a more defensive stance.

138