In 2008 everyone said everything is fine including bear stearns. Every single ceo said the economy was strong and they all said the fall in real estate prices was healthy and normal. They ALL said there was great value in many stocks only to see them fall much further. P/e’s mean nothing because no one knows how low GDP will fall. Stocks can still be quite expensive.
It's not like everyone sees only news about strong & healthy economy and stock market. Not a day goes by that we don't see news, videos and podcasts about disaster in the making. While last week people here were saying that news channels are fear mongering, and some were laughing at CNN. Just everyday chatter, since 2008 probably.
I guess I got Memory Lapse, I fully remember deep trouble in late 2007. I also remember the feeling of a potential pending disaster.
Im not talking signs we may have seen as traders, im talking about all the “everything is fine and stock are cheap” talk going on by wall street.
If you guys remember the lead up to 2007, the market had gone a record number of days without one single -2% (close to close) session (I forgot the stat but basically from some point in 2003 thru a portion of 2007). Similar script. Vol suppression lead to a disorderly decline after enough of the pullback buyers were exhausted and run over.
I hear ya. This blow off move puts the 2003-07 run to shame. Remember also that crude oil went vertical into the fall of 2007. Metals were also going parabolic. This time around crude peaked out and has gone into an orderly, albeit devastating decline (if long). The indicies run on a timer it seems. Vertical spike to unchanged early in the session and then slow orderly selling the rest of the day (at least that's been the script lately and in the early stages back in Oct).