And last, but certainly not least...
remember the saying about hope?
Blue Chips Rise on Rate-Cut Hopes
dailynews.yahoo.com
By Haitham Haddadin
NEW YORK (Reuters) - Technology stocks limped to a higher close on Thursday, their advance capped by faltering stalwarts, while the Dow Jones industrial average rose for the fifth straight day, buoyed by hopes that an interest-rate cut will be coming soon.
So what we have here is a rally in HOPE of an interest rate cut. Basically, they are rallying so that an interest rate cut will already be priced in once it's announced. The best part is, what happens when there is no rate cut?
The blue-chip Dow average (^DJI - news) rose 65.60 points, or 0.61 percent, to 10,868.76, led by interest-rate-sensitive financial shares like J.P. Morgan & Co. (NYSE:JPM - news). But investors also continued to pump money into traditional safe havens like pharmaceuticals.
Safe havens with 30+ PE's? This market is dead meat.
And one more thing...
On CNBS today, they were talking about MMM. One anchor said that if MMM had a 30 PE with it's 6$ in earnings, it will be wort $180. First off, MMM has grown at 6% the last 5 years. A far cry from 30. Second, we are entering an economic slowdown, if not recession. 30 PE? Unbelievable. They currently have a PE of 25. Crazy stuff. |
