Saturday, Aug 22, 2009
Is it over....erm maybe...early bird catches???
CNBC: Time To Switch to Cash
"In late February, we had long-time bear Robert Prechter, Founder & CEO of Elliott Wave International on the "Closing Bell," where he predicted a sharp rally. Prechter has been studying the charts for the past 30-years. That's a pretty bullish call for the perma-bear!"
Target for the move back up is actually a range, so might extend and might go up for a while yet... then again..
Posted by techieman @ 12:08 PM (728 views) Add Comment
5 Comments
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1. taffee said...
Some facts for you
1/sp500 is currently on 25 x earnings
2/in 2007 peak it was on 17 x earnings
3/In 1929 it peaked at 14 x earnings
In 1974 dow fell to 7x earnings at bottom of bear market wheras we 'bottomed' at 12.5...but in 1974 the dividend yield was 17.6% which is why the market rallied so much........dividend yield for sp500 is currently under 4%.
The historical mean is just under 10 x earnings,so if we halved from here the stockmarket would still be expensive
2. drewster said...
taffee,
Dividend is under 4%, but that's better than you'll get in a savings account surely? Also if money printing / hyperinflation is here then stocks are a good place to be (especially stocks of heavily indebted companies, which seems to be most of them).
3. penbat1 said...
Cash is trash.
4. mdmick said...
So bling is king?
5. mountain goat said...
penbat1 - "Cash is trash"
Can you think of an investment class that has gone up in value from 12 months ago?