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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Walter Bagehot who wrote (41385)	2/10/2011 11:57:51 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78749

I don't think that markets are in cloud cuckoo land. I think they are in the Value Investor's no-man's-land though. I.e. we are not in crash cheap area anymore and we are not in the bubble where everything is super expensive. But we are way up from lows and value investors don't want or like to chase stocks up. We are on the wall of worry: should we buy stocks that are still somewhat cheap or should we wait for correction? It's hard to pay up for stock that was 10-20% cheaper couple months ago, so there's a lot of self-justification for not buying because "stocks are not so cheap anymore". Since I see a lot of megacaps at pretty cheap valuations, I think that market will continue to climb. I am not a market timer or random event prognosticator, so I don't know if it will climb pretty straight or if we are going to get a correction like last year. I have some cash and positive cash flow, so I mix "paying up" for some stocks with holding cash for possible better opportunities. Not sure this answers your question and concern. :)

To: Walter Bagehot who wrote (41385)	2/12/2011 10:29:19 AM
From: Madharry	Read Replies (1) \| Respond to of 78749

i dont look at markets as a whole but in AUgust and Sept. of 2010 i made my first purchases ever of megacaps like IBM ans GOOG and I still think they are very cheap on just about any metrics. many of the chinese stocks also look very cheap because of the fraud concerns. I own several mining entities that seem very cheapn in relation to the current market cap of their holdings- aab.to, cmpzf, als.to. if anything iwould say that financials ans bonds are in cukoo land rather than equities. I wonder how many foreclosures are going to be happening and who will be maintaintaing these properties once the deadbeat mortgagees are forced out and what cost. I think we have easily lost an entire generation of homeowners betweeen the people in their late 50s who were laid off and saw their 401k plans devastated, and people in their mid to late 20s, instead of moving into well paying jobs are either unemployed or underemployed, and saddled with student loans and credit card debt. I would be very curious to see the numbers on just how many people are now living rent free, while the banks figure out how to foreclose legally.