marek : <Once we'll see valuations 10 times earnings instead of 150 on the NASDAQ then we can talk about bottoms.>
Those are reasonable bull market valuations. In SAf, at the moment, many very good (what ever that means) stocks are selling at 5 times earnings.
<Right now it will continue to slide down with short bounces up, DOW is already infected>
That's what I see --- S&P below 1000, NAZ below 1500. But others say the Fed will support the market as in 1987, 1997 because the US government can't afford to have a major bear on its hands especially now that people's pensions are in the market.
<printing money is the only salvation for present administration>
Nothing new about that. Already the US is the biggest debtor nation with 5 trillion debt. So, what's a few zeros? Let's make it 10 trillion. No problem as long as CNBC says there's no inflation.
<On the other hand deflation will mean mass unemployment, banks going under in record numbers, 1920's but on much larger scale.>
They'll have a war against Saddam or Somalia again. Only this time they'll use 500,000 soldiers. And 50,000 cruise missiles. Anything , but deflation.
<Too many guns on the streets.>
You aint seen nothing --- come to South Africa!! Here they hit cash-in-transit trucks or banks with 20-50 guys carrying AK47s, RPGs, hand grenades in military-style operations. |
