>>>For a long time folks were happy to find new justifications for valuations<<<
It's not the people, it's the analyst who continue to place positive spins on valuations when markets are rallying, and vice versa.
>>>Sanity always returns after a time, and now valuations are being readjusted. This process will not be short term; the market will not bounce to new highs just like that.<<<
The markets will NEVER return to new highs for a long time, possibly years. However, the well is full of $$$$, and the pump is waiting for the right time to pump. I STRONGLY feel the markets will rally back to 4000-4200 for one last time this year, then we'll see the real bear market next year.
>>>I can not see institutions using the election as an excuse to buy or sell. How much real impact does one leader or another have on the tech sector? Really?
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Institutions have the funds, but would never risk putting it to work in a time of unprecedented uncertainty in American History. The simple fact of having STAbility will have an ENORmous impact.
>>>The fundamentals appearing to continue to weaken, that ol' justification game is pretty hard to keep up...
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I completely agree, but analyst and financial news networks such as CNBC(kings of the institutional right arm) will put an incredible positive spin on the market, once this election mess is settled. Then by early next year, look out below!
>>>As has been said many times, when the market fails to go down on bad news, better yet rallies in the face of it, we can start thinking about a bottom.
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I personally witnessed a ton of institutional buying @ the 3084 level yesterday in many issues, only to see them sell off the same blocks right before the close, because of the election.
You mark this down. Every analyst is on the bad news band-waggon right now, but when this election mess is over, the positive spins placed on the tech sector, regardless of PE ratios, will be as clever as the Democrats and Republicans campaign managers could ever think of.
Make no mistake though, when you see Tom Costello (CNBC institutional puppet) blabbing his mouth near the end of December about how high the analysts think the markets can go, will be the precise time to sell short. Because next year, will truly be an ugly year, due to lock expirations, buldging inventories, and corporate debt. It all spells disaster by next April.
KM |
