01-25-2010, 11:27 AM
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#1
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Hall of Fame Poster
Join Date: Jan 2007
Posts: 22,657
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The truth about the stock markets
Think it's finally ok to invest in risky stocks or even the tried & true blue stocks? Think (or at least consider) again.
"Don't be fooled into thinking that last week's 5% drop in the S&P, and the recent sell-off in oil, remotely makes them fairly valued, let alone bargains. Equities and commodities, as well as Treasuries, which actually rallied as stocks dropped, still have a long way to fall. The reason: They've already seen huge run-ups that put their prices far above their historic averages, and far above the levels justified by fundamentals. Most companies can't possibly grow earnings fast enough to support their lofty valuations."
Beware the 4 new asset bubbles
Beware the 4 new asset bubbles - Jan. 25, 2010
This is a great article that keeps it simple. It talks about how cheap loans have fueled heavy investment that has fueled the run-up in stocks and gold. Like all runs, this one will end.
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"No one walking this earth knows what is truly righteous"
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