It's property that has been booming, not the stock market. Yield seeking has pushed share prices to very high levels based on PEs and earnings growth outlooks. The earnings outlooks don't justify the PE ratios of many companies IMHO. The fundamentals don't justify the high prices across the board at the moment. Better to pick stocks on a bottom up approach whether that be technical or based on fundamentals. There are always great businesses to be found.
Mr Buffett responded that policymakers have "done a lot of things that weren't in my Economics 101 course", so the very low rates changed the usual calculations.
"Stocks are selling at high prices historically, but you need to look at them in the context of rates," Mr Buffett said.
"The question is how long will these rates prevail? Will we be like Japan?
"At normal interest rates, stocks at these prices will look very high. But if we continue with these low interest rates stocks will look very cheap."
Probably the down volatile phase after sideways but pick you're excuse why. A pessimistic look forward? The American markets have high P/E stocks too but their markets still remain elevated.Why is that? The US gets a sniff of a possible hike and the sky is falling, we get a cut and its dark and stormy! WTF?
Can anyone shed some light on that for me?
$79.19 low today. Looks like a sniff on the XAO of supply drying up or is there more selling before going up again? I am all in stocks due mainly to optimism and partially to company reports and outlook.When CBA hits $95+ it's a Sell, and the market follows. The insto's knock each other over in the rush.
There'll be buyers soon for CBA, between $80-82, and then we'll consolidate.
Today (Monday 29th) is looking more like a lead to a further selloff tomorrow. Really at the mercy of the large markets and not much can be done but wait I suppose. No use fighting the fear.
Wouldn't there be a lot of people annoyed if there is a bounce up tomorrow. Today was more than some disturbed day traders taking a hit.Might be good buying opportunities ?
Don't ask me I'm a contrarian investor, always the wrong way...
Volume was larger on Friday and less today so this is suspect. Blue chips especially lacked volume to match the gap down and range which is an anomaly. I think there are clingers still in the market with more downside to come.I haven't done any real analysis but I'm thinking that the falls would at least partly be due to tax loss driven selling given it's the end of financial year?
Good assessment. Have to fess up and admit the recent month I have erased all gains for the year and turned negative.Unfortunately the sentiment surrounding the Greek (probable) debt default will continue to be a massive headwind for global markets. Even if Greece is only <2% of the Europe economy.
Looks Bearish for now.
Good assessment. Have to fess up and admit the recent month I have erased all gains for the year and turned negative.Another influence from elsewhere that stunts the ASX.
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