3/2/09

dshort and Henry Blodget

four-bears-large



Given that we just had the highest peak in history by a mile


 it doesn't seem absurd


to think that we might be headed for the lowest trough in history by a mile


 


If the stock market stops falling


and earnings eventually begin to grow again


we would be close to the bottom


 


The market could simply move sideways for five to 10 years


while earnings growth gradually reduced the price-to-earnings ratio


to the 5 to 8-times range


 


This is what happened in the 1970s


 


Henry Blodget


How Low Can The Market Go?


Clusterstock


If some equity markets overshot on the way down


after financial bubbles in burst 1873, 1901, 1929, 1966 and 2000


and rose when abhorred



could some trends tend to last longer and/or end sooner than many think?

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