Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: CharlieChina who wrote (62052)	1/17/2003 7:40:50 PM
From: Mac	Respond to of 62347

SEA.v looks like it could break out from here.

To: CharlieChina who wrote (62052)	1/18/2003 1:03:07 PM
From: John Walker	Read Replies (1) \| Respond to of 62347

http://www.investmentrarities.com/thebestofsp01-15-03.html BEST OF STEVE PUETZ January 15, 2003 Even though the stock market is now much lower than it was at its March 2000 peak, it is more overvalued now that it was then. The stock market bubble of the 1990s is unusual in many respects: 1. It’s the greatest bubble of all time. A virtually non-stop rise of 18 years is unprecedented. 2. When a bubble peaks, it normally crashes near the peak, at its first minor wave 3 decline. So far, no panic-crash has developed – even though the bear market has lasted for nearly three years. 3. Valuation levels have never come close to the current extremes. The degree that the market has risen above book values is mind-boggling. 4. Dividend yields have never been so low. Until the 1990s, investors always required that the average dividend yield at least exceed 3%. In distressed times, investors would not buy stocks until yields rose to the 7% to 10% range. At under 2%, the current dividend yield shows a complete lack of concern about the downside prospects for the market. The next few days will be critical for the stock market. Any indication that the new-year rally is buckling will be bad news. That’s because the stock market is more overvalued now than ever before. Conditions are ripe for a crash. Economic prospects are completely opposite to the bullish expectations of the majority. Furthermore, time does not cure the excesses created during a financial bubble. Price does. It will take a collapse in the S&P 500 index to below 100 to undo the damage created by the easy credit conditions of the past twenty years. The negative conditions facing the stock market now are not the result of management decisions being made today. Rather, it’s the result of improper decisions made five, ten, and twenty years ago. Those decisions are done. They cannot be reversed. Hence, the consequential implosion now materializing cannot be stopped. The short-term boom is past. The long-term payback period has arrived.