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Strategies & Market Trends : Buffettology

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To: jhg_in_kc who wrote (537)10/30/1998 7:58:00 PM
From: kahunabear  Read Replies (2) of 4690
 
What fundamentals do you use to back this up ?

BTW, I completely disagree.

IMHO - Earnings multiples are high. Price to book ratios are high. The economy as measured by GDP is expanding while profits are falling. What happens when GDP falls ? We are printing money which may lead to inflation. There is global overcapacity. The country is in debt. Foreign countries can make stuff cheap and the IMF is financing them to sell it to us. This bull market is loooong in the tooth. Y2K may spark some fear. Volatility is high. A market that jumps in 10-20% moves in weeks isn't exactly a stable place to invest. The percent of savings in the market is too high.

Should I go on ?

WS
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