Friday, March 21, 2008

Noisy bulls on the street

Wall St Week Ahead: Stocks may rally anew on Fed's acts

Is there a change of sentiment in America?

Posted by fools @ 01:11 AM (843 views)
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6 thoughts on “Noisy bulls on the street

  • Here’s another article on the subject with a nice little graph:
    http://www.usatoday.com/money/markets/2008-03-20-world-markets_N.htm

    I’m certainly no expert on stocks but the gist of it seems to be that the latest trade figures are a bit less worse than expected so some stocks are recovering from previous losses. Here’s a quote from the USAtoday article:

    “There’s a lot of bearishness built into expectations, so the markets could respond positively if we get any better-than-expected news from these economic reports,” said Keith Wirtz, president and chief investment officer of Fifth Third Asset Management, which manages $22.5 billion.

    So I’d say that there is a positive change of sentiment in America relative to prior expectations.

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  • Landedgentry says:

    Very early days. If they can call the bottom of the stock market, why couldn’t they call the top of the property market?

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  • Cristiano Barbaro says:

    What tosh! This stock ramping is all about a temporary placebo effect induced by fed lowering rates and bankrupting the USA even more by buying the rubbish debt. Of course the financial cockroaches in Wall St (and other places) are enjoying the weekend rewards. Have another cocaine party this Easter weekend, and bring on the girls! I bet within 2 weeks all these gains will have been reversed.

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  • Car bumper sticker: “Please God, just one more bubble”.

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  • European-bear says:

    Look at the yields…..most bank stocks are a paying 5-10% dividens…that is a huge yield which makes them look very cheap. Of course there is a risk that buying banks you could buy a Northern Rock or a bear Sterns and lose the lot. Even if diidens are cut, due to lower profits, it is still way over historical yields. Looking at the wider marker p/e ratios of major stock indices are looking very cheap by historical standars (c 9-10), whiuch is also a strong buy indicators. Of course if the economy collapses so will earnings and then the stocks are expensive. If there is only a moderate recession, then this is the bottom. This is the typical p/e ratio at the bottom of every cycle. The top is 20-24 (and actually on the bull run from 2002-2007 p/e ratios barely improved….as earnings recovered together with prices. The great slump of 2000-2002 was the unwinding of the new paradigm that stock prices could support a p/e of 24 plus. So even the top of the market a few months ago p/e ratios were actually a little below long run avearges….
    On a technical basis this could well be the bottom, providing the recession is no worse than say the 1990-92 recession….
    Capitalism is run by bubbles. The next bubble will occur in 5-6 years and it will be something different. Perhaps commodity stocks

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  • Chief Debt Officer says:

    Although Ben Bernanke’s home is under water, he hasn’t walked away yet. That’s a good news.

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