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Originally Posted by william the wierd
I agree with you but I have not found other sources with credible reasoning that say different from the market gurus. Lew Rockwell and other online newsletters I subscribe to are claiming March rather than January of 2009 will be the downturn onset. I'm not sure I buy that.
More than 1% of the stocks in the US market have 0 debts and PEs less than 5 but greater than zero by my estimate based on the MSN screens I have used. (Debt ratio and PE as low as possible and running separate screens for other variables and their combinations in all possible modes eyeballing for non-duplicates was my plan. But max and min dividend screens took me well past what I considered to be a critical figure.) I do not see how total collapse is possible with any stocks available that have dividend yields greater than 100% and there are such, not many but at least one. This situation confuses me.
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Right, there will be no total collapse or anything near it, we will just see gas prices rise for sure thru the rest of the summer and possibly into the new year where oil might peak at around 200/barrell. Its obvious its making 150+ in the next month or two. We may continue to see some increase in unemplyment, which will temporarily bring the market down. The stock market will continue to go up, then down, then up accordingly. We are pretty much through the worst of the stock market due to housing and credit market. The parts that will affect the stock market are some gas prices in some sectors. Its going to be a bumpy ride for the year on stock market overall, but it isn't that bad. It'll likely beat the solid 2% gain we have on most money market or interest accounts, and if it doesn't it will at some point.
I won't go into the politcal aspects that could affect these changes in the near future, but am willing to argue any of them.