THIS IS irritating ! KRAMMER IS A BLOW HARD! oh yes he has said to buy certain stocks and they went up, so what, we can all make predictions to some level of accuracy. his show reminds me of those awful infomercials. JUST BULLSHIT! them and CNBC. { bucket shops} peace, bgp
today I ran thru PEGs, valuations and growth rates on all the dow components and came to a conclusion: Dow is pretty reasonably priced on a historic basis, considering average projected 5 yr growth rate is 8-9% right now. I'm curious if anyone has any historic charts on PEGs throughout history on the S&P, Nasdaq, and/or Dow. the pe's in the spreadsheet are forward estimates for this upcoming yr... so they're a little lower (13.38 instead of 15-16). historically PE contraction occurs in times of economic slowdown/recession, and the opposite occurs in expansionary times. Considering our growth rates are massive, albeit slightly declining .. its very possible the markets have plenty of upside here. Kind of trippy how most of the Dow is more expensive than Google or Apple considering relatively muted growth rates. I guess thats the price to pay, considering price volatility looms large on higher growth vehicles. I'm not much of a Cramer fan, but if we manage to sustain these earnings growth rates, dow can be up 17% just as easily as the it can be down 10% [for the exact opposite, unexpected economic slowdown from anything negative you can imagine]. The up bet is usually the winning one, since earnings growth is so high, and inflationary pressures bias everything up.
"10 Internet stocks you must own for the rest of your life" call in the last bubble... http://www.thestreet.com/funds/smarter/891820.html
"You see, I expect the Dow to grow about 17% in 2007, to 14,548." I'm more interested in why he said it, I'd like to know his reasons or anyones thoughts of why he said it, for that matter.