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Strategies & Market Trends : SiliconInvestor All Stars Forum -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (430)	3/3/2007 2:19:27 PM
From: SouthFloridaGuy	Respond to of 1718

I disagree. Valuations were higher, the Fed was raising rates, housing was still strong (thus making diverting money from equities),... The risk now is basically that the bulls have under-estimated the effects housing will have on earnings and that valuations are at peak levels. I do not think so. Everything I see points to a housing bottom by early next year (give or take 1/2 a year based on where you live), with the biggest pricing adjustments occuring this year. Inflationary pressures lurk under the surface, but have subsided substantially since last May. I would also add that buying US stocks vis a vis an index is not necessarily a "bet" on the U.S. I'm certainly not advocating buying companies which derive their earnings from M.E.W. or overleveraged middle class consumers. The U.S. is screwed for quite some time, I think, but U.S. companies are well run, well managed, and are a great way to play global growth.