It's a privare equity/take over bubble. this rally has been fueled by private equity/take over specualation and every trader,investor,and analyst is trying to pick the next logical target. just look at the last week alone; BNI-MEDI-SLM-. it seems that every day a stock pops a point or two out of nowhere due to take over or private equity rumor;quite franklly,so much has actually been going on it's hard to ignore it.i try and refrain from trading these rumors because these intraday pops usually fade but sometimes the street agree's and the stock runs for a few day's.This has been going on for a while and thats what is really driving the markets in my opinion. Companies amassed so much cash the past 4 years that rather than invest in new capital,they are just buying the competition. Also,private equity firms are taking companies private and thsi is where the real bubble is. that said,CAT ,ASD,JCI,and AXP delivered some monster numbers. as a trader i try not to get overly analystical and look to deeply into something(as i used to do) and just go with the flow.for all we know the DOW can go to 20,000.
the thing is, in order for there to be a massive bubble popping, there has to be sky high P/Es of like 100+ Most of the companies that have been rallying like nuts still have fairly low P/Es. 10% correction is very possible though.
Where else can you put money to work that has anywhere near the potential of stocks? That's what this rally is all about.
People been saying we've been in a so called bubble since this rally began in October 2002. Gets old after awhile.
Some are early to the party and others late. Ride this, last two months have been quite easy. Old news, yes it is.
thats not what i said..we can go to 20,000 for all i know..as a trader i just go with the flow..my point was that private equity and buyout spec is what has been fueling the rally.
I am afraid that eventually public funds have to chasing these type MA; and you should have fair idea where the stock market heading. At that time; it will be 2000 all over again. It is best for the public who have to hold the bag.
i agree..it is old news but its something most investors do not realize,thats why i brought it up...AFTER THE LOSSES I took back in the day,i have learned never to look to deeply into things and just trade/
Guy, Nobody cares about what you have done past or present. You try and push crazy views. Who asked if you look deep or whatever. Your like some nut job who dates himself. Maybe you didn't know most traders know about the bubble but to post it so late says something.