Dipy: As you are well aware, the market is an anticipatory mechanism. On the day after the election, the NAZ had fallen by a third. By the time Bush became President, the NAZ had fallen over 50 percent. By the end of Bush's first quarter in the Presidency, the Naz had (as of now) bottomed at 1700. What possible explanation can you give that Bush's policies contributed to this precipitous decline? None. Perhaps it was, as you have suggested for the past five years, excessive valuations being given to the market? If so, whose responsibility was it to "talk down" the valuations in the market. Perhaps Clinton could have done precisely that.
What really happened was that Bush and Cheney, in particular, gave the American public straight talk about the economy, and to ears such as yours that were accustomed to hearing endless Clintonista doubletalk, that straight talk sounded like "talking down".
The simple truth is that our great economy is cyclical, that manufacturing has been in the doldrums since last May or April, and that it will take a while for the excesses of the tech market to work its way through our economy.
But for now, there are terrific values in the tech market, including the semi market that will splurge once the economy begins to move again.
Based on sales, current fair value for LSI is around 27 to 29, but we must remember that we are at the nadir of the sales trough, and it is very likely that LSI's fair value, based upon historical sales figures will soon be north of 40. |
