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jcrash
248 Comments
The Next Bubble?
Decades of Negative Returns: A Long-Term Look at the Dow
This selloff has nothing to do with the next president. It has to do with the last 8 or so not taking care of business at home before they goofed off on their partisan war mongering ways.
This Isn't a Bottom, It's a Disturbance in The Force
Just as the call for $250 oil was a good time to sell, the calls of the coming apocalypse are a good time to buy. Sure no need to go all in if you want. Me, I plan to go down swinging. No sense sitting out the last fight, if that's what it is.
When things hit P:E of 1 (as some have) or a .25 price to sales ratio as others have, I think it is ok to start buying some things.
Ten Oklahoma Stocks
Crazy P/E Ratios
Overcorrections to single digits as you propose do no happen in every downturn and actually only happen about 3 times in the last 90 years. One of those was the decade of inflation, one was the WWII era, and one was briefly during the depression.
However, the greater macro trend you are ignoring is the greater participation in the stock markets. More capital chasing the same earnings means higher P/E's. So, if we get to single digits, I'd be more than shocked.
Technically, 8000 on the Dow and 850 or so on the S&P looks pretty impenetrable.
Boomers are committed at this point, if they take it out now, they are pretty much sure to miss the start up and then pile in to create one hell of a bounce. If they stay in, they will be committed to adding even more at these levels.
Additionally, recent tax changes have created a large demand in college savings accounts. Those monies are relatively new and will continue to grow with acceptance. Finally, while you might think foreigners would desert us, the truth is that their is no substitute - no country with a better combination of innovation/security and size. This is quite in evidence this week with the turn in the Euro and the European banks.
We will print up as much as it takes to keep the boat afloat and folks will buy it and be glad their money is safe in times like this. They cannot leave us in the bad times - they will have to wait and try it in the good times.
The Cramer Crash?
So Much for Stability: The Euro Cash Flood
Cramer: Dow Could Drop Another 14%, Oil's Going to $50
He lies. Period. He signs every law with a little disclaimer saying he can disobey the law anytime he wants because he is President (Paraphrased, but he does actually do this). He has locked up AMERICAN CITIZENS with no trial for 6 years in SOLITARY CONFINEMENT - and they went crazy. Great. No chance there to see if they were actually guilty of anything. I think you would think different if somehow YOU were the one he locked up.
He doesn't believe in torture. However, he won't define torture for you, so torture is defined only in the air between his ears. Makes it awfully convenient, huh? The guy has an IQ of MAYBE 105. He has been led around like a puppy on a leash by the real powers that be. He was perfect for that...make him think it was his idea and he will stick to it until the end of the world comes.
As far as taxing goes...Guess what? I'm middle class and I will pay less in taxes under Obama. McCain promotes a $5000 tax credit for healthcare. Guess what type of Healthcare you are going to get for $5000? Not much. I like my employer plan just fine. McCains $5000 is sure to be like the $5000 deduction for childcare...it was a nice number 8 years ago, but childcare has literally doubled in 8 years, and that number as remained the same. So, the $5000 tax credit for healthcare will effectively be worth half that in just a few years.
I'm also tired of inaction by all of the government on Social Security. We are like the proverbial frog in the pot letting the water get hotter and hotter. Someone - and a democrat with a democratic congress is the only one that could possible do this - is going to have to step up and CHANGE the system. Yes, some will pay more, work longer and get less, but as it is now the system is simply a non-starter.
So, you can proselytize for the Republicans or Libertarians all you want (Personally, I think of myself as both of those), but the truth is that those groups can get nothing real done and we need a mandate going into 2009. Obama is the only hope of a President with a mandate, so deal with it, as it is a done deal.
Crazy P/E Ratios
MLPs Still Attractive After Recent Selloff
Short Selling Ban Sends Chills Through Options Market
Cramer: Dow Could Drop Another 14%, Oil's Going to $50
And you can quit debating McCain vs. Obama, because Obama has it in the bag at this point, given the economic situation. Iraq + Palin + Economic Calamity is the perfect storm for the Republicans.
And yeah, I'm a Republican, but I'm also tired of having my rights revoked by lies, my President lieing to his country, and my money disappearing.
Mexico: One of the Safest Places to Invest Right Now
Munis in the Crosshairs
Buffett's GE Warrants Quickly Trade Out of the Money