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Any guesses on a "bottom"?
I think we have along way to go before P/E ratios get where they need to be. Amazon is trading at about 100 times projected 2003 earnings. I think that is insanity. If you don't look at the indexes, but just look at the fundamentals on a lot of the "most widely held," there are still a lot of overvalued stocks out there.
But people buy Amazon every day, so what do I know :)
Oooo, that's scary... I was going to post Dow: 6800, NASDAQ: 1000
But the good news is this: Just buy somewhere between the two and you will make money.
I'd say we are somewhere in between, depending on your time horizon.
Just buy somewhere between the two and you will make money.
Well, at least if the market goes up from where you buy you will :)
Ya really think they are oversold? For the sake of existing investments that would be really nice but if companies start having to expense options, there are a few more rounds of accounting disclosures, and whatever else comes up, it may be that the majority of these tech companies have never made any money once options are figured in.
Even though that doesn't really change anything, it changes perception and that is more than enough to keep prices at current levels or send them lower.
Dollar cost averaging is probably a good way to go.
BOND ladders are a good way to go.
They say its a good time to buy stocks...but I don't think there is a company you can rely on out there (considering recent events in accounts)....
News today that the European banks are "taking a pounding"...I didn't pay much attention to it, but cmon, if the banks feel they are short of cash- we must be hitting bottom about now! :)
Lessee, at 0% inflation, that comes to 8% a year. Sounds like a good deal. I'm in. :)
lawman
Ya really think they are oversold?
Just short term skibum.
Lessee, at 0% inflation, that comes to 8% a year. Sounds like a good deal. I'm in
Yeah 8% is not bad but it's nothing compared to the annual returns of the last 10 years. Also the 8% is "if your lucky".
Looks like the bear feels it's time to show those fangs again.
Real Estate or precious metals? hehehe...
Crude Oil futures? Once world oil reserves start to go downhill, prices will go up. On that note, so will the value of companies making significant investments in alternative energy R&D.
Death care (not to be morbid) - similar growth potential. Although the stock of one of the biggies (New Orleans-based Stewart Enterprises) has languished.
Ah, it's much easier to say what NOT to buy. Tough question, rcjordan.
[finance.yahoo.com...]
though there doesn't seem to be much of a trend there for capital gains on the stock itself.
But I think that is as it should be. For much of the 90's, the stock market was like a giant pyramid scheme (I hope the same terminology applies overseas :)). Stocks became more valuable not because of company growth but because there seemed to be an endless line of investors ready to pump money into stocks (remember Yahoo at $250 per share?). It turned out that the line of investors was not endless, and the pyramid collapsed.
I think the market is trying to find its way back to the fundamentals - profitable companies with proven management teams, a history of making money, and the ability to pay dividends - all of which adds up to a stock which should appreciate in value over the long haul.
Now if I only knew which ones those were :)
Healthcare might be a bright spot for investors, but with the price of prescription drugs increasing, benefits being cut, seniors investments vaporizing, there will be no one to pay the bills.
Even WorldCom isn't capable of going below zero
I have friend who doubled his money on Worldcom - bought it at 8 cents and bailed when it rebounded to 20 cents a couple of days later (he actually decided not to be a hog - got out at .16 :))
NEW YORK (CNN/Money) - U.S. stocks sank in a sea of red at midday Tuesday as techs retreated following an estimate cut of Intel and a downgrade of Citigroup led the crumbling blue-chip issues.
Citigroup slapped with a sell! Now there is somethin' ya don't see everyday.
Citigroup slapped with a sell! Now there is somethin' ya don't see everyday.
Agree skibum, but even more significant than that news is how the Nasdaq in paticular is handling the news. It's been showing pretty good relative strength (compared the the other indexes) through out the day.
Dow takes triple-digit drop after IBM implodes from EDS's blockbuster warning; economy disappoints. [money.cnn.com]
Below 8k for the DOW - 1st close at that level in a long time no?
NAS -35.68 to 1216.45
S&P -26.14 to 843.32
We saw a lot of spending pullbacks after 911, but now that the markets are tumbling of their own accord business doesn't seem as concerned.
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"A big pie in the face of investors will be Tyco, whose numbers are in shambles," said Cohodes. "Tyco's numbers when they come out will have a bigger impact on the market. It will make EDS look like Sunday school."
Ever work with any company before and after Tyco bought them? They buy it and after the acquisition a perfectly good company ceases to function.
Goldman Sachs' chief investment strategist Abby Joseph Cohen lowered her 12-month target on the Dow industrials ($INDU: news, chart, profile) to 10,800 from 11,300 and the S&P 500's ($SPX: news, chart, profile) to 1,150 from 1,300.
Ya, OK. I'll take some of whatever she's smokin'
After the close, Internet portal Yahoo (YHOO: news, chart, profile) posted a third-quarter profit that surpassed Wall Street's expectations. See the story.
Rockin!
DOW: down 215.22 points, or 2.9 percent, to 7,286.27
NAS: down 15.10 points, or 1.3 percent, to 1,114.
S&P: down 2.7 percent to 776.76
