I’ve got a simple question: Where is Madoff money? Who answers? Nobody. Isn’t it strange? Something smells very fishy. He didn’t act as a one person and needed some help and some other guys still keep billions of dollars. Will America stay corrupt or will you find some new Eliot Ness? I hope there are some honest people out there. I hope.
Tuesday, June 30, 2009
Sunday, June 14, 2009
Why do you buy stocks at 130 P/E?
Yesterday I found out that the average P/E for S&P500 is … 130. You can check it here.
Here comes the question. Why do you buy stock at 130 P/E?
Do you believe in such a strong recovery in American economy? Will profits catch up with those crazy prices in the market? I don’t think so.
I just follow big speculators who received money from your pockets and pump up the prices.
Exit levels are 925 and 870 points respectively depending on your risk tolerance.
It’s still pure gambling not investing and it’s hard to believe in V shape full recovery.
However, we see a lot of money created just out of thin air and the funds must be invested somewhere. I agree that even some expensive stocks are better than paper money but they seem a bit too expensive.
The risk is increasing. Technically it’s possible for S&P500 to reach say 1100 points. Fundamentally it would be a kind of madness.
Why do I buy stocks at 130 P/E? I like the orchestra playing on the “Titanic” deck. Nice tunes but I’ve got my raft ready to jump in.
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