Anyone else believe the current environment is not able to sustain an increase on the Dow? Hmm, I give it Sep/Oct tops.
The PE ratio of the S&P 500 is attractive. In case we go into a slow down, corporations are sitting with $2 trillion in cash. The economy has never gone into recession with a positive yield curve. The Republicans are expected to gain seats in the coming election which will create gridlock. The BP oil leak is fixed. The bear market is expected to commence mid-August.
remember David Dreman author of new contrarion, who champions looking at PE and sorts, later got fired by Deutsche during the credit crunch because he bought too much of AIG thinking its cheap then the cheap got cheaper ...
All these are market mechanisms, but the economy is in the gutter which the Dow cannot sustain.... I'm just sayin'
With interest rates so low in the US, some believe that its better to be in stock and get dividends than hold cash an get virtually no return.