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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (6505)10/16/2011 9:52:32 AM
From: Boca_PETE  Read Replies (1) | Respond to of 10065
 
Aside from the interesting EKG chart (which would certainly alarm me IF I were a cardiologist, and I'm not),
economist Larry Lindsey pointed out this week the fact that INCOMES ARE STILL FALLING and PERSONAL SAVINGS ARE DECLINING (ie. people are drawing down personal savings for whatever spending is going on.). It's hard to disagree with his conclusion that this situation is unsustainable and does not imply well for a healthy economic recovery in the near term. Maybe this is what the ECRI is seeing in their economic prognostication of an unavoidable double-dip in our near future. Moreover, the most recent stock market rally appears to be on very low volume which leads me to believe we are in for lower lows.

P



To: Investor2 who wrote (6505)10/16/2011 7:31:21 PM
From: marc ultra1 Recommendation  Read Replies (1) | Respond to of 10065
 
I don't find that chart helpful because it still comes down to whether we're headed into a recession or not. If the answer is yes the E in P/E will fall sharply and the P/E won't end up looking as low as it currently does.