On a positive side, the market sell-off has produced a lot of
down sentiment, and it did not even come down a lot. -ggg-
Earnings yield on SP is still much higher than 10-year
yield (the Fed model), which is a picture that's very
different from 2000 and 1987. So... unless that comes down, or
threatens to do so, or 10-year yield goes up significantly, it
may be difficult for the market to sell off a lot from here.
We'll have to see how the new earnings and pre-announcements
go, and that's soon. If the market proves that it does not
want to go down, it will move higher -g-
Finally, housing bubble pain is in every magazine. Everyone
looks at the housing prices and says WOW. Well, how did corn,
oil, or gold do in the same time period? That gives the
ballpark of printing and real inflation. The truth is,
housing and everything else may still go up as soon as Fed
hilos show up. The dollar is another story. |
