I dont think you were given a decent answer to your point so far. I'll try my two cents (g).
Your point is - correct me if I'm wrong - there's enough big-cap companies around that haven't lost their shirt as compared to the companies in the indeces. This seems to be true as long as success and failure are measured using the stock price gauge.
I feel however (and I assume this point of view is shared by a few here) that "what we got is a failure to communicate": the prices have nothing to do with the economics of the current situation.
Look at the same data using the following
screen.yahoo.com
and have it sorted by falling PE. Viacom for example at 1063.62 is a beauty, something to warm Sumner Redstone's heart. - he'll never sell, and other than that, as we all know, he just wants to win, not to make money.
My point: I see in stocks dollars, that are supposed to procreate, make some more little dollars ON THEIR OWN, via earnings, not via some Ponzi scheme.
I think, that after all the hoopla about new economy and new economy laws, that disappeared as fast as they came, the disconnect is getting reconnected.
DJ
Re Yahoo - a small and sweet point: check the number of securities (100M cap and more) having better than 0,5,10% 1yr performance. I get 1910,1445 and 1600. Any comments from general audience (lurkers, wake up) on these three numbers? |
