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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: KyrosL who wrote (80236)9/24/2011 2:49:40 PM
From: Fiscally Conservative1 Recommendation  Read Replies (1) | Respond to of 217752
 
This market is anticipating vigorous growth simply because they believe the Fed will not fail them. With all the impetus and manipulation the Fed employs via their bag of tricks I fail to see any sustainable growth from their actions this past 14 months.

"My impression is that the US stock market at its current level is not overestimating a European implosion. Stocks appear cheap relative to bonds only because profits as percent of GDP are at all time highs. Unless there is vigorous growth in the economy soon, profits will revert to the mean."

Could it be that profiits as a percent of GDP are in fact not at all time highs but rather the metrics of Price to Earning ratios the market has bestowed on most publicly traded companies to date are ?



To: KyrosL who wrote (80236)9/26/2011 10:49:20 AM
From: Fiscally Conservative  Read Replies (2) | Respond to of 217752
 
Are profits as a percent of GDP really at all time highs ? I fail to understand your reasoning here.