Hi Paul, I'm afraid if the media and analysts pump up the market too much here, we could go to new lows in the Nasdaq short term.
The problem with false starts and false alarms is, it ruins confidence, IMO. If we do go down again, people will just think they got shafted by the analysts and media, again.
Many people will likely not enter this market again until the real bottom is in, if ever.
The bubble has popped, and one will likely not occur again in our lifetimes.
The wealth effect is ruined for some.
There are so many bagholders out there stuck in stocks, they will likely be selling into rallies for years.
If people do see us going nowhere or down after five 1/2 point cuts, like in 1929-30, I think it could get very bloody, time will tell.
Price wars and squeezed margins will hurt profits and increase P/E's even more.
Tomorrow may be telling after this CIEN hype is over, IMO.
This is what I think. |
