Yeah, a liquidity-based rally. Is the liquid alcohol-based, perchance? It's all to absurd.
At least the people on this board generally know when to get out (when the crashes don't occur suddenly and unexpectedly), and they don't stick around for the inevitable plunges at the end of each bear market rally (I hope). Whether they know they're buying overvalued junk is another question entirely. When the bear market is over, people won't be returning to the overpriced techs like honey bees every few weeks.
Valuations:
nytimes.com
"The Leuthold Group, a Minneapolis- based research firm, computes a valuation measure that weighs share prices against earnings, both historical and estimated. What it finds is that, even now, during what many on Wall Street contend is a savage bear market, the Standard & Poor's 500 index changes hands at about 25 times earnings. It would have to fall by 41 percent to reach the median valuation prevailing since 1957. If Wal-Mart sold common stocks, it wouldn't be selling Yahoo! (at 277 times earnings), nor would it be selling its own (at 42 times earnings)."
"It is understandable that amateurs would fail to notice the alarming divergence between the fundamental value of American businesses on the one hand, and the prices assigned to the pieces of paper conferring ownership of those businesses on the other. What is reprehensible is that the professionals did not."
But he remains a voice crying in the wilderness. Buy, buy, buy. And just don't get soaked, soaked, soaked. |
