Greetings, Diamond. Interesting post. How quickly things move. A number of us are trying to figure out how long this carnage has to go. But, I'm reminded of words from Lincoln's second inaugural address: "until every drop of blood drawn with the lash, shall be paid by another drawn with the sword." Must we go from "irrational exuberance" to "total (don't want to think about, speak about, or hear about stocks) disinterest." Some think so. If so, we still have a long way to go. The SOXX held well today. Given the carnage, it shouldn't have. Historical average trailing P/E's for the S&P 500 would place it 300 points (27%) below today's close. Undervalued P/E's, the type observed in real bear markets, would place the S&P 500 another 300 points lower, at 500. (Source: Decisionpoint.com, S&P P/E ranges chart) The S&P 500 at 500. Wouldn't that be something. Every drop of irrational exuberance would, then, certainly be repaid.
Trindy |
