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Futures post sizable losses - the S&P 500 (SPY) -0.7% and Nasdaq 100 (QQQ) -0.8% - as Europe...

Futures post sizable losses - the S&P 500 (SPY) -0.7% and Nasdaq 100 (QQQ) -0.8% - as Europe fails to participate in a fairly broad global rally, the Stoxx 50 (FEZ) off 1.3%. Also not helping are Bank of America and Yahoo down more than 2% following earnings.
Comments (6)
  • Into the Abyss again.
    17 Apr 2013, 07:34 AM Reply Like
  • I struggle to find any news to support this sharp drop in futures. Did we really expect big numbers from Yahoo? Are we surprised by economic numbers out of Europe, including Great Britain? BofA posted better than a quadrupling gain in earnings yet 'missed' by two cents per share.......doesn't seem to support the market reaction. Perhaps there are impending developments.
    17 Apr 2013, 08:28 AM Reply Like
  • Deflationary pressures are in full swing never a good omen
    17 Apr 2013, 08:34 AM Reply Like
  • Decline in gold price. Triggering margin calls. Possibly a big hedge fund now upside down, scrambling to raise cash.
    17 Apr 2013, 09:00 AM Reply Like
  • Caladesikid2,

     

    Setting aside whether there is any news today supporting this move, the real question is what do you think the market is worth going forward vs what is it selling for now?

     

    I wonder what you (or anyone else) thinks of that question (what the market is worth right now).

     

    For myself, I think it's overvalued.
    17 Apr 2013, 08:50 AM Reply Like
  • Good question, RCM. I primarily look at technicals and fundamentals when evaluating the market. I continue to see a number of high growth stocks at low PEs in strategically attractive industries. Because of this perspective, I may be biased toward a more optimistic viewpoint than others. Examples of such stocks are QCOR and UTHR in biotechs. However, I do see many/most of the DOW stocks as richly valued, after their strong run-up in the past three months. I do think deflation is apparent, although foodstocks/grocery costs continue to increase, perhaps there are investment opportunities in that category.
    Net, I see more of a cyclical change driven by deflation than a comprehensive decline in the entire stock market.
    17 Apr 2013, 09:39 AM Reply Like
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