Although I can't say where we will head on Monday or in the short term, the overwhelming market sentiment has become very pessimistic in the last week. This is classic evidence of a bottoming market.
Just as many did not accept, when the market was topping, that valuations were out of whack with reasonable growth potential, so too are many not accepting that valuations now, in some instances, are becoming quite compelling.
When the selloff occurred, people said, "You know, that stuff was way too high - it was obvious." When the selloff ends, and the first bounce solidifies, people will say, "Can you believe that _____ was trading at ______, and I didn't buy any?" They always do. |
