Recent

% | $
Quotes you view appear here for quick access.

BP p.l.c. Message Board

  • mbnacredit mbnacredit Mar 29, 2010 3:46 PM Flag

    CNBC talks about 20-30% correction now??

     

    OH BOY!!!

    “The market is as overvalued now as it was undervalued a year ago,” said David A. Rosenberg, chief economist and strategist for Gluskin Sheff, an investment firm. “There’s a very high degree of complacency.”

    The incongruity of it all can be seen clearly in an analysis of price-to-earnings ratios, a gauge of how expensive stocks are relative to their performance.

    Ratios in the Standard & Poor’s 500-stock index are hovering about 13 percent above the average since 2005; a year ago, they were about 40 percent below the average. That suggests that investors are betting on robust earnings through the end of the year, a view that many economists do not embrace.

    “The stock market has priced in a bit more than what we’ve got so far,” said Jeffrey A. Hirsch, editor of The Stock Trader’s Almanac. “We’re due for a pause.”


    RELATED LINKS
    Current DateTime: 12:36:27 29 Mar 2010
    LinksList Documentid: 36079721
    The Jobs Puzzle Bernanke Can't SolveDow Can Hit 12,000 by Year-End: ExpertsWhich Sector Will Lead from Here?
    Recent rallies have been narrow, with a modest number of stocks reaching 52-week highs even when the broader market surged. There is a sense in some corners that stock prices will decline: investors are betting more on stocks’ falling now than they have since July.

    Mr. Hirsch, citing historical patterns, predicts a 20 to 30 percent dip in the markets before they can climb again. The Dow Jones industrial average is more than 60 percent above its lows a year ago, flirting with 11,000 for the first time since the onset of the financial crisis, though it remains more than 3,000 off its prerecession peak.

    This topic is deleted.
    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
BP
41.29+2.02(+5.14%)Jul 2 4:01 PMEDT