Derek and all,
Re -- All those paper profits make my head spin, and speaking of punch bowls..
Some sobering facts.
1. The Stockmarket valuation far exceeds the GNP
2. A lot of investors assume postive stock market progess, and are in it for the "long term", whatever that means. Very few have seen a prolonged bear market, so this perception could change very easily.
3. Intel's market cap is ~ 162 billion. Combined with MSFT's market cap exceeds the GNP of India ( Country with 1 billion people).
4. Intel's revenues are only ~24 billion.
5. The market currently is driven by liquidity. (Any idea where this money is coming from? BankCD's, money market, foreign). Is this likely to dry up, causing a correction?
6. How much of the market's rise is driven by borrowing (margins). This highly leveraged, form of investment could turn really nasty if there are margin calls.
7. The recent cap gains tax reduction, could cause a redistribution of assets (long term intel holders may sell) causing sell off in stocks which have large % gain.
8. Clinton could be found guilty of campaign fraud, and cause consumer sentiment to turn, and other unforseen events.
Enjoy!!! :) :) |
