Garzarelli: Well, I think that according to our valuation model on the stock market, not based on interest rates, but based on inflation -- the earnings yield to the inflation rate, which I think is the way to value the market these days.
This indicator has always told me when we're at the peak in a bull market; it predicted the crash of '87, this indicator on valuation also predicted the 1990 bear market -- suggests that at the current rate of inflation, which is about 2 percent, the stock market, where earnings are today, not future earnings, can still rise another 22 percent. I mean, we just ran those numbers this morning. So I would say, on any weakness, it's a buying opportunity. =shag=
cbs.marketwatch.com
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Anyone know if Godzillarelli has had a AZW nomination??? If not, could we have a vote cause this post surely qualifies as AZW material... |
