Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (45704)	2/8/2013 10:57:22 AM
From: expiredoptions	Read Replies (3) \| Respond to of 220508

RE V: Good article V! I have known about this group for a while. So much for a free market system. Here's the big problem with what's happening right now with the indexes a couple percent from all time highs: In 2000 & 2007 when the markets last hit all time highs, 1: 90% of the companies in the SP500 were meeting or beating earnings estimates. 2: Unemployment was in the 4.75 to 5.25 range. 3: The GDP was at least in the 4% to 5% range at minimum. Key Point 1: Those three items are the fundamentals that support all time highs in the market. Now, here's what we have: 1: 70% of the companies in the SP500 are meeting or beating earnings estimates. 2: Unemployment is 7.8%. 3: The GDP was negative the last quarter. Key Point 2: Realistically the fundamentals above, support markets that are -30% to -35% lower than now. Last Point: 1: Wall Street always leads the way by rallying, driving up stocks and markets way in advance of fundamentals. 2: They anticipate what's going to happen a year or more from now and drive markets in that direction. Nothing new, its always been that way. Key Point 3: What do you think Wall Street (who is responsible for 85 cents of every dollar of every stock) is going to do a year (or less) from now, if our current fundamentals do not drastically improve? "There has never been a time in history when fundamentals were this poor and the market at all time highs!"