Harry, Elmer and John,
Thanks for your thoughts on the market.
There is purportedly a lot of cash on the sidelines right now. As I read the current sentiment, buyers are saying to themselves "why buy today, I can get XYZ stock cheaper if I wait". So the only buyers are those that are willing to average in, nibble at stocks that they figure will be higher six or twelve months from now.
At some point, that sentiment will change to "if I don't buy today, the price I will have to pay will be higher tomorrow". I suppose we will need to see news of at the least a bottoming of the demand, if not a slight increase in demand, to change the sentiment.
Are the fundamentals similar to what they were in mid 1997 when the Nasdaq crossed 1500, or are they closer to late 1995 when the Nasdaq crossed 1000? As a point of reference Intel earned .97 in 1997; .51 in 1995, and the analysts think Intel will earn .66 this year, .97 next year.
John |
