Fred Voetsch

Is This Rally in Its Final Innings?

Hey...I'm worried...where's Cetin's comment?!

Cetin, are you okay?

Is This Rally in Its Final Innings?

On May 08 11:18 AM chux08 wrote:

> Great article. I agree and have noticed the same thing. Things are
> better because they're not as....bad?? My oh my.... It kind of reminds
> me of and sounds like the government calling an INCREASE that's not
> going to be as large, as a LOSS. Same type of ill-logical, sloppy
> thinking.


But on the plus side we've got interest rates with nowhere to go but up and P/E ratios with nowhere to go but down. Those two are not a good combination. The market will work lower over this year and likely for several years, given the damage down in the past year and the need for continued deleveraging.

Is This Rally in Its Final Innings?

WOW! Someone who makes sense. "Buy low and sell high" and stay calm when other's are panicking.

GREAT ARTICLE!

I will add a few data points:

1. Interest rates are at Zero. That means they must rise sooner or later and that will not be good for an already weak economy.

2. P/E ratios are out-of-sight and earnings are not getting better they are just being predicted to get worse better.

www2.standardandpoors....

"425 issues (88.94% mkt val) rptd: initial good reports long gone, actuals are -18% off ests (see Energy note), and -36.1% behind last year"

That's from Standard & Poor's, updated within the last few days. Here's the CNBC translation:

"The stock market is up...BUY!"

:-)