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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (88038)	10/8/2008 8:46:36 PM
From: roguedolphin	Respond to of 116555

<<"And as we know stocks can and WILL get cheaper than anyone can believe as disgust sets in.">>> Especially as those that are laden with debt in their capital structure end up being owned by the bondholders of those firms. I was pretty shocked to see the capital structure of some pretty well known big name US companies in my research just recently. Their share prices are down 60% from their recent highs.....yet I don't see their equities as attractive just yet. Still lots of room for equity destruction. I'd be looking at the bonds of these companies as the leverage is wound out of the biggest credit bubble in history. The equity of some of these companies may be attractive someday......but this is going to get uglier and you probably will see former blue chip names equity share prices looking like cheap call options someday in the not so distant future. A bust of massive proportions lies ahead after the biggest credit/debt bubble of all time.

To: SouthFloridaGuy who wrote (88038)	10/8/2008 9:50:37 PM
From: ajtj99	1 Recommendation Read Replies (2) \| Respond to of 116555

If you bought the 1929 high on the Dow, you did not break even in nominal terms until about 1953 (24-years) and in real terms until around 1965 (36-years). If you bought the high in 1966, you were down 85% in real terms by 1982, a period of 16-years. However, the 1932 lows were a great buying op, as were the 1938 lows and the 1982 lows.