softie, <<? Pull back to 1750 this month? >>
1900 - 1850 is the lowest it will go.. but that is part of the course. The course being... Of course the next bubble. There seems to be no avoiding it. We seem to be heading toward another another bubble all the while rational people who believe that the market is being irrational will be served as lunche (not really, only their portfolios). Everything is looking better now thanthey did last summer, last fall, last christmas, people feel better, and that is the ultimate indicator of coming economic recovery. Of course you know that economic recoveries are preceeded by stock market advances. This is apparently where we are now. Argue all you want with the market, it does not listen to you to take the queue for its direction. If it is going up, it is goiong up. If it is going down, it is going down. Please stop telling me what it should be doing. Market can remain irrational a lot longer than you can remain solvent.
At any rate, when these comnpanies start reporting double the consensus, the p/e ratios will come right around. Why will this happen? Simple.. general economic recovery. It is clear to me that you have seen one yet, come out in full force from a recession. It will take your breath away. The productivity, profitability, quarter after quarter, full employement, creativity. it is right around the corner, and we have turned the corner. At the moment we are looking at it. |
