Quote:
Originally Posted by fotze
Talking to more savvy investors than I, I guess the phenomena of the market hitting a seemingly invisible line is the investors that have some algorithms that are programmed to buy shares once a minimum price is reached. I guess there is a name for those types of investors, can;t remember it but Rich, or Loaded comes to mind.
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Yeah, aren't they something to do with P/E ratios dropping to a certain low, and when the market cap drops below some threshold of the net equity?
BoA and a few other banks sure have acquired alot of assets in the bad debt, with the fed's footing the bill.
(I don't really take into consideration the P/E ratio's, but I do take notice; I do look at the MC vs net equity to get an eye for if and how much a healthy company might be undervalued; personally, I look at ROE, OM and PE's when I take a stab at this, but I am sort of just a beginner here)