The Market

And when the ratio has been over 25, the actions have not raised too much. The EP of the S& P 500 is in 12 we will manage to duplicate our capital today investing in action of the index? The market can continue falling and to arrive at still more low P/E that the present ones. In previous stock-exchange depressions, like in " 30 and " the 80 P/E even arrived at 6. In order to arrive at that level, S& P 500 would have to be in the 400 points and DJIA in 4.000, a 40% below the present values. Alarming, but nonimpossible in the present context. To deepen your understanding Caterpillar is the source. It is then moment for leaving to buy? It does not seem to be it.

The bad news continue arriving, but nevertheless, that one is not the problem by which the market does not manage to take off itself of the minimums and continues looking for them. There is a deep feeling to bear market (bearish), in which the plans of salvataje to the economy do not seem to excite, nor the money seems to reach. In a bearish market like the present one, it does not matter what type of the news announces, as much good as bad they will make colapsar to the stock market. When the market manages to find a floor and begins to form a tendency of raises, the good news will be capitalized making raise the market, and the bad ones will practically happen inadvertent, or will not hit insofar as the investors hope. Learn more at: Andreessen Horowitz. It is that during times of investing panic, the psychological feeling is so strong that manages to demolish any good economic data or of he raises in the gains of the companies, and thus the public comes off assets, underestimating the good potentials the news for the economy.

, , , ,