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Strategies & Market Trends : The coming US dollar crisis
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To: zamboz who wrote (19984)4/26/2009 12:47:53 PM
From: LTK0075 Recommendations  Read Replies (2) of 71406
 
Hard Reality Wake-Up Call--and i mean REALITY, NOT fantasy:
The present trailing P/E/ for SPX as a staggering 58.21.
Point #1.
The bottoms in bear markets do not achieve bottom until a Trailing P/E of 15-1 or 6-1.
The SPX if NOW were priced to 20-1 would be 298!
Point Two--Now Read This

From TSR saturday:
<<We may have side stopped Armageddon, but to borrow another biblical metaphor, the global economy, and the West in particular, is arguably booked for an extended stay in economic Purgatory. Last week we discussed the rather bleak earnings picture for the S&P 500 in 2009, which even by the most optimistic projections will have a trailing P/E of 30 in Q4.>>

Then remember the lesser bear of 2000 did NOT hit bottom until SPX touched trailing P/E 15-1 in October 2002.
in the the 1980s it hit 7-1.

Bottomline it is BLATANTLY CLEAR this market right now is GROSSLY INFLATED/DANGEROUSLY inflated.
One need be BLIND not to see this.
The higher this market rallies , the aftermath will be MASSIVE destruction again of wealth, and this FANTASY rally is actually the WORST possible case for recovery as our demented economy is a pathetic appendage to the value of the stock market.

If the stock market only bottoms at 15-1, SPX will hit 223.

All you hear now from the bulls is the words of pathological liars OR mindless idiots.
Have i made myself clear:) Max
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