| The market continued to get slammed in February and has dropped below the November 2008 lows. The S&P is at a 12 year low, down 19% for the year. The DOW is down 20% for the year. After last year's 40% drop, that's pretty amazing and there's no reason I can see why it should not trend down another 10% or more.
Happily, I have nothing in the stock market right now, except some modest retirement money, of course. I would plan to become more bullish if the S&P hits 650, which would be a drop of 11% from where we are now. Given the estimated 2009 earnings of the S&P 500 are now about $32, even 650 seems awfully high for the S&P (e.g., 32 x 15 multiple = 480).
Peace. |