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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (77842)	5/19/2007 12:24:04 PM
From: Smiling Bob	Read Replies (1) \| Respond to of 306849

Buying a company, yes, but always making best educated guess as to whether you're overpaying. Of course this more stringently applies if trading timeframe is shorter- as mine almost always is. Less room for error there. If you strictly buy the company and not the stock, you could always buy and wait for valuation to fall in line with inflated stock price. As far as the entire market, this one is as unusual as the tech bubble. No company can do wrong and all news is a positive. In being long, you're saying the stupidity is rampant and boundless and I'm betting it won't end tomorrow. My feeling is the market can and will get the rug pulled out in an instant and there won't be time to jump. And in what is usually the case, it won't be called a correction until after the fact. I'm stepping aside of this one. It's going to be a doozy. The market is overvalued. It continues rising for all the wrong reasons- mainly liquidity and speculation. There's no real growth or rationale to support unbridled mkt rising 1-2% weekly The problem is the economy is being affected by housing, debt, inflation, taxes etc. There's a lag in reporting as well as tempering of the facts, but it's certainly here. It's a big, heavy ball that has barely begun rolling. Making mkt guesses does sometimes force you to defend yourself but that's not always a bad thing. That justification works both ways. Do I think the market is overvalued and overextended? Absolutely. Most would probably agree in part at least. Many choose to ride the train and will make their best guess as where the bridge collapses. With a market so obviously toppy and vulnerable, I'd say that's nothing more than Russian roulette If longer term investing