Please!
Who's responsible for this? YOU ARE! You're selling! I'm selling! Mutual funds are selling! There is no magic net that holds this up. It's confidence that there is a buyers and sellers that relate what they are willing to pay based on value!
If you think you're paying to much for a car, don't you knuckle the salesguy to give you a lower price? Of course you do. You want more value for your money.
Stocks are NO DIFFERENT. Many valuations were WAY TOO HIGH. People finally all said (apparently in unison), I want out because it's high and I can sell high! SO THEY DO IT!
Valuations will matter going forward. For a while, until the excess and exuberance come back in a few years. Like T2 said (and I agree), we have a short memory.
All people are doing now is selling high, and buying low!
It's what I am doing, and I'm hoping it's what your doing.
And it's all crap about Greenspan causing this. He didn't cause this. If the money bubble continued to expand, people would have this market at 20K with valuation so stretched that analysts would have a hard time figuring out how to continue to re-justify them for a third, fourth and fifth generation of analysis'. When P/E fails, go to P/S. When that fails, find something new.
When the dist settles, the cream will rise, I guarantee it. The market is efficient, and you'd best be served by buying QUALITY companies with earnings and bright prospects.
JDSU is in that camp, as far as I'm concerned.
Steve
Steve |
