After the Dec stk market action, analyst are trying to answer some questions
Some think the market simply over shot projected weaker earnings and re -acted too much. Thus the correction we are seeing
I disagree, even though the rational seems logical
The thing that caught my eye was the number of Co.s that now aknowledge a world slow down. This has to affect consumer sentiment in my thoughts. Consumer debt will become a factor if wages don't pay for higher consumer goods at Wall Mart. Nobody has any money in the bank, Why else are those with no pay check having such a problem
Housing is expected to see fewer new homes built. Buyers don't have the money or have second thoughts about big debt at this time. The entire forcast for americain Co's seems to hinge on a world slow down, thus an expected slow down in sales in the USA and world wide.
Now this is just one analyst thoughts but it seems several others agree. I don't
Nobody seems to be blaming the Fed, just a world slow down that affects everybody. Thus perhaps one should not expect any special gains in stk prices
A holding patern may be the best we can expect while keeping a close watch for any storm clouds.
Investors seeking higher yield and forgetting the risk that comes with this search for yield, brings memories of the last crash
When I look at the price to earnings ratio. This is just one fctor makes me bearish. Plus I think the world slow down could get much worse. Several factors, too numerous to mention, make me bearish
We have had 9-10 yrs of good times. People forget the bad times. We are due for a market crash, just because??? Some thing unexpected will cause a domino to fall and bring the rest of the dominos down also
I suppose a blind squirrel and all that kind of stuff will make me correct some day..