The bulls also point to the so-called “Fed model”, which describes the relationship between (a) long-term bond yields and (b) the ratio of the price of shares in the S&P 500 to next year’s forecast profits. A year ago, the relationship suggested that shares were overpriced by 70%; today, they are priced about right.
In a nutshell, this is the argument I expounded today, which twister chose to disparage. Ken, I subscribe to the print edition of the economist, have done for years, and one thing they repeatedly tell you is that they only know what happened, after it happened. They are great at analyzing the past, but terrible at predicting the future. They call themselves practicioners of the "Dismal Science".
I love the statement in the piece Qwik posted from the WallStreet Journal:
These include: the appearance of the Internet, and the myth that it would be a historically transforming event.
Anyone who doesn't see the Internet as a historically transforming event is a complete moron. I can say this with complete impunity, broadcast on the Internet, since I know the moronic won't see it. I wish them happy investing in gold and long evenings of sitting in their bunkers.
Remember, 3/14/11 is now one day closer.
P. |
