Hot market – Nov. 18, 2008

While lots of hunters are going into the woods as the fall hunting season gets into full swing, are stock values ready to get out of the woods? So far, it’s hard to see the trees (good stock buys) for the forest as the stock market continues to flounder while trying to assess the effect of government bailout proposals.

  • Even if the market sinks lower, there aren’t many opportunities in a lifetime to buy stocks at these values, some analysts point out.
  • Some well-known traders and analysts from Warren Buffett on down are thumping the drums for stocks. “Be fearful when others are greedy, and be greedy when others are fearful,” Buffett advises, and there is plenty of fear as reflected by the Volatility Index (VIX).
  • Lots of stocks are at their lowest price/earnings ratios in years.
  • Although still featuring high volatility and wide swings, VantagePoint charts show that the stock market has calmed down a bit, and VantagePoint indicators are showing some positive signs. (Of course, it may just be the calm before the next unknown storm hits.)
  • Major banks can be bought for about $10 a share; the government still appears to have the too-big-to-fail tag on selected banks that should keep their price from going much lower.
  • Stock market prices in general typically move higher seasonally from November to May.