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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Math Junkie who wrote (42165)1/15/2009 2:21:46 AM
From: Skeeter Bug1 Recommendation  Read Replies (2) of 42834
 
Math Junkie,

read here for an analysis that makes the following assertions back in 2005:

P/E valuation is 161% higher than average
P/S valuation 658% higher than average
P/B valuation is 152% higher than average

investmentu.com

while the article makes it clear that "whatever someone is willing to pay for it" is the value of the stock market, that value will tend to regress to the mean over time.

consider the regression to the mean started (and earnings are collapsing).

why did the market reach suck lofty heights? the government created credit bubble combined with bush's tax cuts for the uber rich created "a big pool of money."

how did so much of that money end up in toxic assets? too much money chasing too few investments became "dumb money." they didn't even do any serious research into what they were buying.
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