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  • Overbought Stocks (7/21/09) [View article]
    Last July 25 the S&P 500 index was 1257. Now it is 979.

    That is pretty much a 30% difference depending on how you cast the numbers.

    The thing is though that both of these numbers are hard to justify.

    While I've done pretty well the last fews months I am very skittish right now. I saved myself a lot of pain last year by being skittish so...

    On Jul 21 09:29 AM FitBusinessman.com wrote:

    > Aren't most S&P stocks overbought if you compare them to their
    > earnings?
    >
    > I mean, these companies are earning 15-30% less than they were y/o/y,
    > yet the adjustment has not shown in their stock price.
    >
    >
    > I agree with Herbert:
    > "Why not just put the S&P 500 up there?
    >
    > I wouldn't touch any stocks at these prices if I was playing with
    > someone else's money! I'd rather sit in cash forever."
    >
    >
    > There is a reason that banks still are not lending to these companies...IT'S
    > STILL TOO RISKY. And the lending has greater probabilities of resulting
    > in a loss.
    >
    > Are we not "lending" money as a shareholder? Are we not "lending"
    > money as a bondholder?
    >
    > Just watch what the banks do;)
    Jul 24 20:55 pm |Rating: +1 0 |Link to Comment
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