At least we are thinking. But there must be specific plans to take us from chaos to the continued rebuilding of our economy. There is no simple "wave of hand solution". We must find a middle of the road solution. We must reduce spending. We must tax more fairly. Anyone who has ever been in government or observed it carefully knows that there are immense boondoggle spending programs. There are gross inefficiencies. And the tax program is filled with loopholes and too little tax on the very wealthy. Both parties are too blame for their weak rhetoric and lack of specificity. The clock is ticking. No serious economist really thinks we can follow this fiscal cliff with its extreme mandates without resuming the recession which will be much more painful than 2008.
I agree with your points. Nonetheless it is an interesting value assuming the stock stabilizes which it is showing some signs that it is. The point of action to buy or wait is a personal decision that each investor must make based on their tolerance for risk.
I don't understand. The Wall Street Journal says what is a BUY. LEN? Their performance is outstanding but the valuation is very, very high. Next years earnings valued at about 25x, that is triple the average valuation of stocks like STX, WNR, etc. Good stocks can have very high prices. Why didn't LEN go up big on yesterdays huge earnings beat?
Thanks for the comment but clearly the private sector has not learned much since 2008. The Europe crisis, JPM's Whale trade, the LIBOR issue, Knight Trading, MSF, etc all show that self regulations has NOT evolved from 2008. Nothing comparable to the controls implemented after 1987. The shock of 1987 brought sweeping reform both from the regulatory side but from much more effective self regulation. Where has that common sense gone in the past 25 years?
What The Market Wants: Continue The Consistency [View article]
I don't think we are looking at this economic landscape the same way. My point the past few issues have been that virtually all countries were facing difficulties or even a serious crisis. The markets had sold-off in more than an appropriate manner. In the last two weeks issues which Seeking Alpha editors chose not to publish, I tried to clarify how domestic valuations had fallen nearly to March 2009 levels (the lowest in recent years). Our conclusion was there were few if any serious options to equities. Fixed income risk/reward is very poor, real estate low but rebounding very slowly and precious metals near historic highs. So there was a need for solutions to the difficulties or crises .
Voila, we got the European summit solution which of course must still play out and equities would move closer to moderate levels. That is what is happening. Of course we need more. We need our congress to become less polarized. We need leadership from our President or our Fed or our congress. The midesast needs many resolutions. China growth slowing needs to turn around but if or as soltions develop, equities will return to at least average levels. Hopefully this make sense.
You can read missing issues free at Sabrient .com, "What the Market Wants".
If Europe can continue to move towards a resolution of the soverign debt and do something for the Spanish banks , I think the market can rally due to low valuations in many stocks.
Banks Fairly Valued And Contributing To Market Strength [View article]
Those are good points and reasonably "on target". Above normal risk remains in the sector. That said, the price fall was overdone and I believe valuations at the current time for well run banks are attractive.
Typo error....in my article FCE as a hedge should have been FXE...Euro Trust Currency Shares which trade options...so puts are the obvious choice as a hedge against Euro problems
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Your educated guess?
david
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Voila, we got the European summit solution which of course must still play out and equities would move closer to moderate levels. That is what is happening. Of course we need more. We need our congress to become less polarized. We need leadership from our President or our Fed or our congress. The midesast needs many resolutions. China growth slowing needs to turn around but if or as soltions develop, equities will return to at least average levels. Hopefully this make sense.
You can read missing issues free at Sabrient .com, "What the Market Wants".
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If Europe can continue to move towards a resolution of the soverign debt and do something for the Spanish banks , I think the market can rally due to low valuations in many stocks.
Banks Fairly Valued And Contributing To Market Strength [View article]
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david
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