Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: Lammergeier40 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6881  
Subject: Passing Gas Date: 5/12/2003 7:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 13
What happened? Did I just blink and miss another bull market?

It couldn't be. The Communion of Bulls has been devoid of posts for nearly 2 weeks. There are all of 2 stock-related posts in the TMF top 100 countdown.

But wait a minute. The SPX is up nearly 9% over the last 30 days. Up about 20% since the March low (that's almost 3 of Buffett's "7% years" in just 2 months), and up 23% against the annual low. The DJIA has performed similarly. The NASDAQ is back to its turbo-charged form, posting a 39% gain from its annual lows.

The NYSE just clocked 290 new highs against only 4 new lows. The NASDAQ had 208 v. 6. Internet and biotech HOLDR's (remember those?) are among the recent new highs on AMEX.

The Dow's 22.6 P/E might seem a bit lofty, but inverted that's an earnings yield of 4.4%, versus a 10-yr treasury yield of 4.65%. One of those will grow at some point, but the other one won't (of course they'll both flop around like halibuts in the bottom of the boat).

I have a new working definition of capitulation. It's not when indices set new lows while everyone throws in the towel. It's when indices provide stellar returns and nobody seems to give a rat's behind.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Mobileye's Growth too Hot?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement