Stan "Q3 warnings season starts right after Labor Day.."
And from what we've been hearing so far,
it doesn't look good.
An uptrend does nothing to solve the market problem
of historically over valued stocks.
Just the opposite.
An investor use to be able to buy maybe 20 cents worth
of earnings for a dollar but today their dollar buys
less than 10 cents of earnings.
So, simply, it would be necessary for the Dow
to be cut in half from current levels to resume
historical value levels.
But this is beyond Wall Street, since they're still thinking
that we need to have a recovery, therefore, its not
about to happen immediately, so we continue to remain overvalued.
Granted, the price levels look attractive
after having fallen to below July lows, but the fundamentals
haven't improved and until they do, how much of a
bounce can we expect?
How many rich short sellers on the institutional side are
going to be scared out when they have the gravity of
over valuation on their side? |
