No. of Recommendations: 68
The talking heads often don't know how to read the data.

2007 was NOT a bubble! It just looked like one to some people. Here is the right view, 40 years of S&P 500:

http://invest.kleinnet.com/bmw1/stats40/^GSPC.html

The index has been rising at around 9% per year for the past 40 years. 2000 WAS a bubble, you can see how in 1995 prices started to rise much faster than the historic average. In 2000 the collapsed and the S&P 500 went back to "fair value." From late 2002 to 2007 the index rose at it's average historical rate. The crash in the housing market brought down the financial system, it was NOT a stock market bubble imploding! From the 2009 bottom the market is recovering at a better rate than average but nothing that should scare the pants off investors.

Tune out the noise, the Zacks, the CNBCs, the Cramers, and all the other noise makers. 99% of what passes for news, isn't. It's NOISE. If you want news, read the earnings reports. Analyze the earnings reports. Most everything else is gossip, opinion, or worse.

Denny Schlesinger
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