gdog

Is It Time to Buy? What History Shows

Mark10r: I would say this true except that the gov't is artificially inflating treasury prices.

Is It Time to Buy? What History Shows

Sideways?

Maybe for some...

Govt allows banks to use toxic assets for loans to buy treasuries, pushes price of treasuries up, foreign govt's also want treasuries as their currencies tank. Interest rate goes to zero.

Gov't is flush with cash, goes on the biggest building spree since whatever year. Bridges, barracks, roads, bio tech, clean energy tech, stem cells, tunnels, levees for new orleans, schools, hospitals. Everything a caring government might build with oodles of free cash. If this creates any economic activity at all, it's a net gain for the gov't and everyone who invests.

Probably also a great time for small business sub contractors.

Allocate accordingly.


On Dec 09 06:52 AM The LFB wrote:

> I really don't know why you and everyone else who writes about this
> stuff doesn't see this:
>
> Put EPS on an S&P chart. You will see that the sustained 2003-2007
> rally didn't begin until long after earnings had crashed and AFTER
> they begun to rise once again.
>
> And if you look at the EPS during the rally, you'll see it goes up.
>
>
> Of course there will be intermediate ups and downs-we're in a 18%
> upswing on the S&P right now from the Nov. 21 low. But these
> are moves for traders, not investors.
>
> Stocks are probably more likely to move up and down like this without
> a sustained rally for several years because earnings still have further
> to fall.
>
> The ones who saw price declines coming and bought debt are way ahead
> of the game. Why? Because in the three months to October, headline
> CPI fell at a 4.4% annualized rate which means during that time they
> were earning maybe 8% annualized. And they got to sleep at night.
>
>