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This is called a wall of worry: Everyone fearing a bad outcome, we are
experiencing now a correction. Once everybody will be deep in that fear, it
will only be able to rise again...
A two year bear market starts to be farily long already. If tech fails,
there will be rotation, because there will be fear of missing out on the
"value stocks". Once these rise, techs will rise again.
Gwenn
Joe Frabosilio wrote:
> I don't know if I should stop reading the Wall Street Journal or not.
> Everyday I can find something that says the market maybe at a top.
>
> Page C1 of Monday, Jan. 11 issue, " Value Judgment: Getting a Handle on
> Stocks' Worth".
>
> In the article it compares the valuation of the S&P to bonds. The
> current yield of the S&P is 4% and the Bond is 6.6%. (S&P will have
> operating earnings of $58.27 this year. Divide 58.27 by its current
> level. = 4.%)
>
> The end of the article should have been a wake up call for many
> investors. Last year's gain in the S&P can be accounted for by just
> eight ( 8 ) technology stocks. " Indeed, 230 of the S&P 500 stocks are
> below their level of two years ago."
>
> I know, I've read somewhere before that this is what happened in 1929.
> I just can't find the book or page #.
>
> Lets see what happens.
>
> Joe Frabosilio
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