Posted on 02/27/2013 6:27:54 AM PST by blam
THE NEXT STOCK MARKET CRASH: Why Many Pros Think It Has Already Begun
Sam Ro
February 27, 2013
Stocks are near all-time highs. And there are plenty of reasons to be terrified...
After coming within points of an all-time high, stocks have begun to stumble, and volatility appears to be returning to the markets.
This has led some market pros to declare that an amazing four-year rally in stocks is over and that we're on the precipice of a new crash.
And there is certainly no shortage of logic to support that view.
Massive U.S. federal budget cuts are looming, political instability in Europe is returning, and currency values around the world are falling.
And by many measures, U.S. stocks look due for a comeuppance. Valuations are elevated, profit margins are at all-time highs, and there are signs of investor complacency everywhere.
Of course, not everyone thinks stocks are headed for a crash. In fact, some experts think we're at the beginning of a new long-term bull market and that investors should go "all-in." But we'll focus on those folks later.
For now... (Click to the site for numerous charts)
(snip)
(Excerpt) Read more at businessinsider.com ...
Are you kidding? The stock market is totally controlled, manipulated and propped up...One has to be an idiot to hand their money over to Wall Street.
I’m not sure I understand what you’re saying, and I’m almost positive you didn’t understand what I was saying, so let’s just let it lie.
I recommend reading lessons.
I said it was market manipulation, by the Fed.
And that I don’t have much money in the market.
It’s not at all clear to me on what point we are in disagreement, and why I therefore must be “kidding.”
And I stand behind it.
Uh, them.
;-)
Wall St. is sending a message to Uncle Ben, “yeah, that $90 billion a month you been giving us to pump up the market, you need to double that.”
It seems to me that people with lots of cash (not me) only have a few choices: invest in gold or other metals; let it rot in a money market fund with a microscopic interest rate; stuff a mattress; or buy stocks. I think the low interest rates and undesirable bond markets are inflating the price of stocks. If interest rates went up to a point where an investor could gain 6 or 7 percent a year, stocks would look less appealing and the marked would be lower.
This.
I don’t see how the stock market can crash when it is being supported with FED Reserve money. It is not like the FED Reserve is going to withdraw their money and crash it.
Hahahahahahahaaaahhahaaa!!!
If the market was at 7, 500, the P/E (zero’s famous profit earnings ) ratio would be about 8. You don’t know what the hell you’re talking about.
With artificially low interest rates, artificially low inflation rates I would expect to see P/E's in the traditional 12's - 17's not the 21+ range as they are now.
The curreent TRAILING P/E for the S&P 500 is 17, hence my comment that a market cut in half would be a P/E of 8. Among the multiple sources try www.multpl.com. And yes, I concede the E portion of the ratio is being jacked up by 0% interest rates.
Seems I am not alone when reading your comments, which seem coded or convoluted at best.
the impact of monetary policy on the economy is convoluted
That’s ok! Many do not know the market.
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