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To: Cold Heat

Good post.

There is a lot of noise on these threads, but how many Freepers are talking about the Fundamentals such as consumer confidence, rising unemployment, lowered earnings going forward, companies going out of business, contractions in capital needed to grow and expand, etc...

As if the markets are just one big conspiracy.

Too many people here act like the market has a mind of its own and is not really tied to the greater economy. Too many people aren’t aware that the market is a leading indicator for the ecnonomy.


136 posted on 10/06/2008 9:05:03 AM PDT by Freedom_Is_Not_Free
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To: Freedom_Is_Not_Free
Too many people aren’t aware that the market is a leading indicator for the ecnonomy.

Yes, and too many people also don't realize that the credit/bond markets are a leading indicator for the equity markets. The trouble has been increasing for 18 months -- remember the SIVs and early rumblings about MBS bonds in the summer of 2007?

Buying equities on dips these days is pure speculation, IMO. How do you value a company when traditional balance sheet valuation metrics do not capture the risk of CDS and other mispriced financial assets that can blow up seemingly strong institutions books on very short notice?

147 posted on 10/06/2008 9:56:51 AM PDT by dashing doofus (Those who are too smart to engage in politics are punished by being governed by those who are dumber)
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