cynic69

Cheapest Valuations in Decades Will Trump Panic Selling

Dear JD
Do you realize how naive it sounds to state that "the PE ratio of the S&P 500 is 11". If you are talking about the past my reaction is that history is no harbinger of the future. If you are talking about future PE ratios you are dreaming a polyana dream. When I read articles like this it raises my suspicion that the author is already in the market and is hoping that he can trick the rest of us into piling in after him. I think that the consumer is in debt up to his hips and the price of oil is going to skyrocket again. I think that future PE ratios are more like 30 or 40. I have been banking a ton of money by buying puts everytime the market rallies. Anyway, best of luck to all you bulls.

Time To Abandon Stocks?

With the price of energy higher than anytime in history (relative to wages) and Joe Sixpack is trading his Suburban for a Vespa I think it might be quite awhile before Ben can engineer another meaningful rally. For all you guys who think that world has not changed because of peak oil why don't you load up on some airline stocks, they are a real bargain.