TelecomFreq-
I think Monday will open up (but not big), then be a really roller coaster day and probably end pretty flat, but I don't think your optimism is misplaced and there certainly are bargains galore out there. Fingers crossed!
I am actualy thinking that the markets will go up on Monday. Just my 2 cents, which is about all any of us have left after last well. LOL
Personally, I think this week was ALL Europe. I think the market will wait to see what actually happens with the government shutdown...maybe NEXT week for that!
Might lead to a nice Moody's downgrade though...
Dow has worst week since October 2008! The Dow Jones industrial average closed the week down 738 points, or 6.4%, its worst weekly performance since October 2008.
All three indexes fell by more than 5% for the week. The S&P 500 was down 80 points, or 6.5% for the week, while the tech-heavy Nasdaq dropped 139 points, or 5.6%.
Wonder if the looming government shutdown had and affect.
Just watching right now, but dont worry, if I think i get something figured out I will be sure to share.
Where does Europe go from here?
Street Smart
9/23/2011 9:22:43 AM
Logistically speaking, WHERE does Europe go from here? Given that the Euro seems to have been a mistake, how does the EU begin to "unring the bell" and extricate itself from the mess so that Greece, Italy, Spain, etc., etc., can devalue their currencies without bringing the whole house of cards down?
I really don't understand in practical terms where they can realistically go between their rock and their hard place and on what timetable. Thoughts?
Good strategy
tokyogai
9/23/2011 9:20:23 AM
Holding more cash and waiting to see where things go seems to make sense right now. I don't think anyone can predict what might move the market at this point or in which direction. A little pause and let the wind direction sort itself out seems to be in order.
"Out of curiosity, what makes you believe that the market hasn't factored in all these potential crises?"
The S&P 500 is currently priced at 1111, which if you apply a 12X mulitple means that the market believes S&P 500 companies will earn $92 per share in 2012. That's a historically high earnings rate for the S&P 500. I don't think the market has factored in the potential for a recession yet. If you think there will be a recession/depression earnings have to come down and those the S&P 500 would come down.
See:
http://www.investoruprising.com/author.asp?section_id=1287&doc_id=232420
Re: When it rains it pours
Phoenix
9/23/2011 8:29:37 AM
Yes and we would have seen the normal economic recovery already. It truly is a big mess with so many different decision makers and work cultures. One shoe fits all doesn't seem to work and I don't see a solution in sight.
Re: When it rains it pours
Drivewaygirl
9/23/2011 8:05:06 AM
For all practical purposes, Greece has already defaulted.
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