eternitus

The Crash of 2008

The government will stop at nothing to stabilize the financial system, avoiding a great depression scenario.

Forget charts and historical comparisons (a sample set of 2-3 tells you nothing of consequence). There are too many variables that are different right now. If you drop the Dow's profits by 30% (I think this is unlikely, given that bank profits will actually rise as a result of the TARP and Fannie and Freddie stealth TARP), the Dow will still only be trading at a PE of 15 and yielding 3%+... this will be at a time when cash on the sidelines (there is an enormous amount of this) is counting its returns in basis points.

Buy wide-moat, established companies with low debt, high cash flow, solid yields and <60% payout ratios, and get paid to wait for the flood of sideline money to float your stock values higher.