I am mostly out, retaining a core position of gold miners and Treasury Only money market.
There is still time to bail but it won’t last.
Anonymous
January 20, 2016 9:58 am
The “correction” needs to fall to an average PE of 12 or less if the market is to reach a sustainable level without artificial support without the Fed pumping huge amounts of money directly into the financial markets.
And that is if the underlying basis of it is in real business, not virtual business that has no real asset value behind it.
Virtual business would require a drop to around 8, IMO anyway.
Bob
January 21, 2016 4:20 pm
The market will tell us which way we will go.
I suspect this is a big, ugly second wave correction that will last awhile. Then, to the consternation of doomers everywhere, a huge, multi-year wave three up after that.
1500 on the S&P appears to be the dividing line between deflation now, or a big, continued partial recovery.
I am mostly out, retaining a core position of gold miners and Treasury Only money market.
There is still time to bail but it won’t last.
The “correction” needs to fall to an average PE of 12 or less if the market is to reach a sustainable level without artificial support without the Fed pumping huge amounts of money directly into the financial markets.
And that is if the underlying basis of it is in real business, not virtual business that has no real asset value behind it.
Virtual business would require a drop to around 8, IMO anyway.
The market will tell us which way we will go.
I suspect this is a big, ugly second wave correction that will last awhile. Then, to the consternation of doomers everywhere, a huge, multi-year wave three up after that.
1500 on the S&P appears to be the dividing line between deflation now, or a big, continued partial recovery.