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Non-Tech : Kirk's Market Thoughts
COHR 132.010.0%Nov 3 3:59 PM EST
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To: Kirk © who wrote (4097)6/1/2016 11:19:11 AM
From: Return to Sender  Read Replies (2) of 26398
 
I agree with you 100%.

I have read a number of times that the stock market tends to sell off after the Fed raises rates the first time. Then it recovers and often sets new highs. It's after the third rate hike that tops tend to be cemented leading to bear markets.

Is the Fed going to raise another couple times? Probably... but who knows.

It would not surprise me at all to see the market trade to higher highs before a top is inevitable.The Fed is not in my opinion going to do another round of quantitative easing. They are not going to go to negative interest rates either any time in the immediate future.

I don't think our economy is all that strong. I don't think earnings growth justifies the P/E of the S&P 500.

But where else do investors turn to get a decent chance at making some money than by being long in the stock market?

In my humble opinion low interest rates have created another bubble in the stock market but it won't be widely recognized as such until it pops.

Eventually I still think the S&P 500 will return to a P/E ratio below 10. But I have been saying that for years. If it happens 50 years from now I won't be here to say... "See I was right."

But I will continue to hear ... "RtS was way too bearish for far too long."

LOL, RtS
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