Dennis, I agree with you. Like I have been saying for the past two weeks on this thread, the charts looks bullish. I can't go short the market when the charts that make up the major averages are all breaking out of bullish patterns. Granted tomorrow could be an interesting day, however I believe that the path of least resistance has been established, and that up. My style of trading is strictly technical so I don't dive into the fundamentals much but I would throw this out to all of you,,, Is this market truly overvalued? We hear everyday just how pricey this market is, and we buy into that,,, and if it is as expensive as everyone claims, what continues to drive it higher. I've giving this alot of thought lately and maybe its a possibility that were not as overvalued as the experts claim. Look at the S&P, NAZ which are so heavily overweighted by just a handful of stocks; Is it fair to say that the overall market is too high just because a handful of stocks in the major indices are at high multiples. What about the small and midcap stocks that have been relatively quiet for such a long time, and are historically cheap, if this market broadens out wouldn't that be a huge positive for the life of this bull market? Besides, the stocks that are at trading at such high multiples are the ones that are growing at the fastest rate (excluding internuts) which is somewhat justified.
So if the baby boomers are in the peak of their earning years and will be pumping billions of dollars into the markets over the next ten years, just how overvalued can we get? Anyone have an opinion on this, I would really enjoy reading them. Thanks.
StockOperator |
