Not to worry -- CBS news is reporting today that the experts say that the more the stock market drops, the closer it is to bottoming out. How's that for an intelligent theory? Arne't you glad we have the wisdom of the experts?
Carolyn
Yeah. At least it can't go below zero . . . can it?
If you go back to the seventies and plot a vector for the future and then bump that vector just a smidgen due to real new technology created in the late 80's, then you should get some idea where the stock market would have been today without the clinton era speculative bubble.
Most I've read say that that vector would have placed us at about 6500-7500 in 2002.
We truly are nearing the top of the bottom. Call 7000 the average trend line. Once you go below that 7000, then you should be dealing with what is TRULY a good deal.
Some companies OWN so much property, equipment, etc., that they truly do have a stable capital base. P&G, GM, GE....those kinds of companies.
I'm not sure about owning intangibles. I want the companies owning something real. (I'm not referring here to mutuals, stocks, bonds, etc.)
I'm talking about an actual company and its assets.
Last night a "senior investment strategist" from some forlorn "financial services" outfit (bokerage house) opined on Bloomberg that
"if the market doesn't go up when it should you can bet it will probably go down."
I wonder how much they pay that guy...
Not to worry -- CBS news is reporting today that the experts say that the more the stock market drops, the closer it is to bottoming out. How's that for an intelligent theory? Arne't you glad we have the wisdom of the experts?In related news, prominent mutual fund managers and financial analysts now say that stock market valuations could continue downward past zero before bottoming out. "We had to pay Waste Management to haul our Enron stock certificates away," said one Wall Street veteran. "I'm not sure exactly what price that was per share, but obviously we'd list that as negative."