Joe, thanks for the interest rate/fed discussion. Those are very important topics and easily got missed. Please keep us informed when you see something important in the Fed corner. I think the Fed will have difficulty raising rate since it will drive down the Yan even more and causing another round of crashes all over the world. HK is already crashing in anticipation of this rate hike.
The following is an interesting article about the general market :
"But analyst warns investors be careful with values in a speculative bull market"
May 5, 1998: 10:10 a.m. ET
NEW YORK (CNNfn) - The remarkable rally on
Wall Street, with stock prices climbing far beyond
the traditional benchmark of earnings multiples, is
leaving some analysts at a loss for a solid
explanation, but at least one market watcher says
that the days of the price-earning valuation might not
be over yet.
Vince Farrell, chief investment officer at Spears,
Benzak, Salomon and Farrell, shared his concerns
about the market's apparently unstoppable bull run in
the light of ongoing bad news in Southeast Asia and
elsewhere. Here is a partial transcript of his "Business
Day" comments.
You know, there was a report by Morgan Stanley
on the Nasdaq quoting somebody that if you take out
Intel (INTC), Cisco (CSCO), and Microsoft
(MSFT), they account for 59 percent of the earnings
in the Nasdaq composite.
All the other stocks are trading at an average of
90 times earnings. Now, that shows you the level to
which speculation has risen in this market, so you had
better be careful. (Mang's note : P/E 90 ?? for coms)
cnnfn.com
Mang |
