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Strategies & Market Trends : China ETF - FXI -- Ignore unavailable to you. Want to Upgrade?


To: Norrin Radd who wrote (90)6/1/2009 1:06:39 AM
From: Walkingshadow  Read Replies (1) | Respond to of 105
 
Here is an interesting analysis of "sell in May and go away."

ritholtz.com

Suggests that this summer will be particularly painful, because we are in a bear market, and the returns during bear markets in the summer months are significantly worse than at other times.

Re valuations, we never hit levels that are typical of market bottoms seen during recessions. We never even came close. Sure, there are particular stocks that are very undervalued, but that happens all the time. I am referring to the valuations in the SPX and Dow. This is another reason I don't think we have seen the bottom of this bear market yet.

Personally, I think the SPX will have to hit about 650 before we can put in a true bottom. That will bring the valuations within range.

Here's more on valuations and market bottoms:

Message 25640283

WS