I fully realize that "crash" is a very strong word full of all kinds of very definite connotations, but I really can't think of any other way to articulate what is happening. Whenever the wizards at the Fed run the proverbial printing presses to create more fiat dollars out of thin air, those inflationary dollars have to seek out a new home and a great deal of them begin bidding competitively on the already overvalued US equity markets. It is no coincidence that the S&P 500 bubble really ignited after Bernanke began aggressively goosing US money supplies! Any way you slice it though, the fundamental and technical case for the S&P 500 is certainly for another serious downleg approaching, probably carrying us to the ultimate bottom. Once the mighty index trades below 1300, we will crash. With the S&P 500's enormously-overvalued P/E ratio and immensely bearish technical breakdown, I can't help but think that the professionals are selling out like crazy leaving the folks the Wall Street crowd call "suckers," the mainstream working American middle-class with their precious retirement and college savings in the markets, left holding the bag, which is emptying fast. It is truly a tragic sight to behold, but this is the way these supercycle busts always work in history too yet virtually no one seems to heed their hard lessons. While us private investors can't save the world, we can zealously try to transcend the real-world of popular opinion on the markets. Rather than living in the confusing world of Wall Street lies and perpetual promises of "the bottom is in" or the profit recovery will roar forth "next quarter," investors can seek to understand the markets as they really are. The markets could not care less about you or me, they just exist.
I went ahead and added a touch of reality and truth to your regular daily incorrect thread. See above
you do realize that the market is not overvalued, right? we are slightly below historic p/e valuations. are you saying most earnings will disappoint and most companies will be guiding down this earnings season?
I close my eyes, only for a moment, and the bids are all gone All my dreams, pass before my eyes, a curiosity Dust in the wind, all the bids are is dust in the wind
Gee, you really are original . Using the exact words of an article from 2002. At least give the author some credit. http://www.zealllc.com/2002/spcrash.htm It's a long article, but do a search on the page for wizards of the fed and you will see that paragraph is WORD FOR WORD. S&P 500 Slow-Motion Crash Adam Hamilton July 12, 2002 2911 Words