The scary part for me is (putting it the same way I have read a couple times) that the economic system has cancer yet the system/government is trying to sell you a car crash.
Once they clean up this alleged car crash there is STILL cancer to deal with....
I am not so concerned about where the bottom is in the equities market as I am about where the upside is within the next 2-10 years? Companies values are based upon easy credit, low interest, high leverage, etc. This stock drop is just the beginning.
The effects are just starting to be felt and who knows what will happen with the American dollar, inflation, interest rates, etc. But I do know one thing, this is far far far from over and keeping cash on hand may be better than investing back into the market too soon. Seems to me the real bottom will be when even those trying to sell people on the 'stocks on sale' concept have faded into the night...
And I would be super careful with equities priced in USD. You would have to be up 50% just to overcome the loss on the dollar over the past few years, and that dollar could plummit at any moment that foreign debt holders finally pull the plug....
Claeren.
Last edited by Claeren; 10-06-2008 at 11:29 AM.
|