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
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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