Despite the … yawn … oh, sorry … deep market drop today, I will still press forward with reason number three to consider the market in a positive frame. I know, it seems “wrong” given the current state of market affairs, but remember, there is a future past all of this “stuff.”
Given that the recent fear of a global recession has abated, and corporate guidance is pointing to a reasonably good Q4, and beyond, one must do what one does when considering buying stock – check out the price to earnings ratio, or P/E, or PE. Given what we now know about earnings and guidance, the S&P 500 is now trading at a PE of 11.8. That looks mighty attractive for any stock, much less a basket of 500 stocks up against an historical PE of 14-15 …
Winter, well, as winter is here in California, is coming on. Rain and cold have touched … Ahem! Excuse me! I’m sorry, did you say Italy Don’t you mean Greece Oh wait, this is Wednesday, so Italy is on the table today.
This is how I feel some days – “And would you like the ‘fear de jour’ today, sir No, then perhaps I might interest you in today’s special – market collapse ala europee.”
These are serious issues, but c’mon folks, get a hold of something that will give you a little patience and courage. And to the politicians who continue to politic in the face of these crises, I say get ahold of something very strong that will break the hallucination that your way is the only way, and adopting any part of any other way means the end of the world. Sheesh! It’s a mad, mad, mad world, or so it has been said …
Attached to the above is the slow move toward an overarching political structure binding the members of the European Union. The process is in place, but if some of the bad kids on the playground don’t start playing by the rules, new rules will be coming sooner rather than later, and those new rules will provide lots of ways to punish the bad children for not playing well with others, including being asked to leave the playground …
German Chancellor Angela Merkel said on Wednesday the situation in Europe is so unpleasant now that it is time for a change and called for changes in the European Union Treaty.
The clear problem here is the incapability of the market to see past a day combined with the politicians and their need to blather rather than act forcefully and resolutely. Italy, Greece, Finland, the U.S., it does not matter. All the mouths constantly going off exacerbates an already tense situation, and when that little, four-legged creature hears all the contrasting noise, it takes its darting eyes and stiff ears and runs as fast as it can, yet it goes nowhere but round and round in a circle. Yes, that would be the market. Can you read the frustration in my words
Trade in the day – Invest in your life …
