We are in a slow motion Crash!

Discussion in 'Trading' started by blowingup2012, Apr 10, 2012.

  1. Explain this to me. How is is that Most blue chips trading between 10-20 P/E ratios and you are calling this a bubble?

    I understand you are not happy with the world government monetary system but what does this have to do with corporations being profitable?

    Are you expecting P/E ratios of 5-10?
     
    #21     Apr 11, 2012
  2. It's just a Pavlov response to the huge 2008 drop. The primitive human expects and wants a repetition of that, no matter what the facts (P/E's etc) are.

    Now, I agree with him that central banks play a VERY dangerous game ... only the real blowup will be far away in the future.
     
    #22     Apr 11, 2012
  3. The other problem with the idea of a "slow motion crash" is that empirical evidence shows that declines are faster than rises in financial markets. That's why they say markets "take the escalator up and the elevator down".

    A "slow motion crash" is a contradiction in terms.
     
    #23     Apr 11, 2012
  4. http://twitter.com/#!/nodoji
     
    #24     Apr 11, 2012
  5. Lucrum

    Lucrum

    Have you ever witnessed a real equity market crash, in real time in front of a monitor with real time quotes?
     
    #25     Apr 11, 2012
  6. I've already written elsewhere that slow to rise, faster to fall is due to geometric weighting.
     
    #26     Apr 11, 2012
  7. I'm not familiar enough with your entire oeuvre to cite your pronouncements correctly, so you'll excuse me if I don't try.
     
    #27     Apr 11, 2012
  8. dude, there are no "slow motion" crashes.
     
    #28     Apr 11, 2012
  9. ElCubano

    ElCubano

    2000, 08 and Flash crash. I was short BSC at 66 or so and closed position as it vaporized....i believe it was a fri or mon....made little in comparison to what I could have made had I gone to the bathroom to take a dump
     
    #29     Apr 11, 2012
  10. Crude Oil in 2008 was a slow motion crash.

    I think it was twice as lethal because it was such an orderly decline that a bunch of people were convinced the "bottom" was just about every single day.

    I still remember EMR Global jumping all over himself to declare how long he was for the entire decline.
     
    #30     Apr 11, 2012