I’ve been a bear on stocks (except for precious metals and energy)for many years. Has anyone noticed that today’s S&P 500 index at about 1340 was first reached on April 8, 1999? Not exactly a lot of bullish growth over the last nine years. I look forward to becoming bulish, when the time is right, but that is not now.
Right now, I’m a bear that is morphing into a bull !
The bears took stock prices down rapidly at a time when earnings continued at 10%+ (outside of housing and finance). This creates buying opportunities for value investors like me. The growth investors are still hibernating bears, because there isn’t much growth. That will come later.
The Fed has shown the fortitude to ‘recycle’ junk companies (such as Bear Stearns) before they go bankrupt. The recyclers, such as JPM, will turn this trash into treasure.
We have to keep going and let the process take its course. It’s very Darwinian: the weak are eaten, the strong survive and grow. It’s the American Way, having served us well for over 200 years.
Long term stock market will continue going down simply because most of the stocks are TOO expensive.
Many of the tech. bubbles are still alive, they only lost from 20 to 30% and still traded at 10s of times of their book values.
Funny to hear each morning from those Wall Street cheerleaders about “investors think that or consider that news …”.
Come on ! There are no any “investors”. There are speculat …, sorry, I mean traders who buy certain sector
trying to create bull wave hoping that the crowd will pick it up. But there is no crowd. It’s only THEM !
All the ordinary people are already up to their eyeballs in stocks bought from top prices last year.
perma bull. why not? Turk will always buy billions of S&P futures to prop things up if they get too bad, as well as all the worthless trash securities and overleveraged institutions that are in danger. Can’t fail.
I have noticed something about the difference between the “bad” news, and the “good” news for Wallstreet. Good is company specific, bad is systemic. Bad today is durable goods orders down (again), Crude inventories down(again), Housing sales 12 year low. The “good”? Motorola is breaking up into two companies, Ford sold Jaguar and Land Rover, Take-Two rejected a bid from Electronic Arts.
Does anyone else notice a difference here? I know, everyone wants to give out good news so consumers will continue to have confidence and continue to spend. In case no one noticed, consumers have spent wildly though several sever down turns of confidence. The difference today is that they ran out of money. If it were not for the increase in the total spent on gas retail sales would really be in the loo. Total sales at grocery stores just dropped. That is not lack of confidence, that is lack of funds.
Reality bites.
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Being an unemployed bookkeeper since Jan 2nd, I decided to maybe learn a bit and explore my unknown knowledge of the stock market. I was astonished what I found. As I have worked with financial statement for over 30 years, I started looking at the companies on wall street that offer stocks for sale. I saw companies that were as debt ridden as what the media portraies the typical american citizen as being.
Our country is in for a rude awakening, including the stock market. First housing, followed by finance, then jobs, what’s next for the “Corporate States of America”? Maybe we the people should UNITE.