Market Watch: Extreme Sentiment Often Predicts Reversals [View article]
David,
I know what you're saying. That's why I wrote in the last paragraph "This is a relative statement, of course....". There is always money on the outside that could come into stocks. I'm just trying to discern the general balance of supply and demand and that suggests to me a weighting towards money in stocks that could come out as opposed to vice versa. But your point is well taken: this is not a precise statement.
Good comment. Like I said, I'm having a tough time valuing it. It's too expensive on GAAP Net Income. But it's not clear to me that's the right measure of earnings to use. It's only a 5 multiple on 2008 EBITDA. Depreciation & Amortization is a huge expense and I don't know how much of that is reflecting economic reality.
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Market Watch: Extreme Sentiment Often Predicts Reversals [View article]
I know what you're saying. That's why I wrote in the last paragraph "This is a relative statement, of course....". There is always money on the outside that could come into stocks. I'm just trying to discern the general balance of supply and demand and that suggests to me a weighting towards money in stocks that could come out as opposed to vice versa. But your point is well taken: this is not a precise statement.
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