fxtrader07

What's Causing This Slow-Motion Market Crash?

the author is right: credit markets and especially the interbank lending market are key. unless they get these fixed, the economy will come to a halt and stocks fall even further.. If they can't fix it for another year then todays stock prices will be fair to expensive (depending what sector you look at). If they can fix it over the next 3 months then many stocks are absolute steals here.

@Whidbey: true, the overall s&P p/e doesn't look that cheap. BUT: it already includes now the disastrous earnings of banks and insurers. And while these won't recover to 2006-2007 levels anytime soon, recover somewhat they will - bringing the S&P's p/e down again.
second, there are now tons of stocks trading for their cash in the bank, business for free. msft could buy itself at current stock prices with cash and free cash flow - and still have some money left. oil companies, oil servicers with strong order books and backlogs, fixed contracts for a couple years out trade at p/Es of 3-8, natgas companies at less than half of what their natgas is worth (and that's assuming todays low natgas prices to stay). mlps and royalty trusts trading with yields of 15-20%.
there is indiscriminate selling. make no mistake. either oil breaks down to $40-$50 for an extended period of time or these stocks are once in a lifetime bargains (and many are hedged anyway to quite an extent)