This really belongs on the Kahuna thread,
so hope I don't tick anybody off, but the
BK is a little dead these days, wonder why...
When is somebody going to get chicken you ask?
Well the mood has to change. The boomers
are not going to get chicken just because
each day leaves the market more overvalued.
Soon Microsoft will be trading at 60 times
earnings--maybe the Dow will run up toward
30 times earnings. Price to sales apparently
doesn't mean anything, price to book?--try
again. Your mutual fund owns a hyped up
internet stock which lost money this year,
no worries, it'll earn a buck next year (yeah
right) and that would put the stock at only 50
or 80 or 100 times earnings, what a steal to
buy it now before those earnings kick in!
But someday the economy will begin to slow,
or inflation will kick in once more, or both.
Unemployment will start creeping up, people
will stop paying their credit card bills.
And then we will get a bear market.
Sometime in the next ten years stocks will be
cheap again, and I'll load up, til then, it seems
to be pretty easy to make money, trading in and
out, so what the heck.
I do feel a little stupid each month when I watch
my puts expire however--but so far I am only spending
a little bit of my trading profits on puts.
Funny, a month ago everybody was shouting about
world deflation, haven't seen that talked about
too much on the threads lately, any thoughts out
there? |
