Shabba

Ten Reasons for an Imminent Stock Market Crash

And I meant to add: Q: Is there a propect earnings will get better? I mean to say, is the market rally based off of an anticipated earnings recovery in the near futre?
A: Highly unlikely, how would this work? Helicopter Benanke cutting rates to 0% only has a direct effect on what banks can borrow. If banks believe they will not get paid back they will not loan out their cheap money. There is no reason to believe they will get paid back because according to just about everyrhing you can measure the average American is swamped in debt and unable to pay his bills. The reason this dynamic is so important is that the economy over the last few years was based on CREDIT, not money. What is going to replace all of that credit?

Focus on earnings, stock are just a reflection of the current value of a business and future earnings potential. Everyone makes things so complicated. And yes, I believe the market is waaaaaaaay overvalued.

The question of whether it will crash is a different story though. Stock will drop once a broad enough group of people figure out that business won't be earning near what they use to. It's as simple as that. When will that happen? Who knows?

Ten Reasons for an Imminent Stock Market Crash

I look at it this way: Q: What are companies currently making?
A: Earnings in the last few quarters have been absolutely terrible, along with the rest of the economy.