- The past 2 months approximates the August 1987 crash, although back then there was a 22% loss in a single session.
- In 1987 44% of people were in stocks, now it's more like 70%.
- 401(k) assets were trivial back in 1987. Now they total about $9 trillion (much in stock funds).
- Investors are now down to ~ 50% stocks, matching 2002 market bottom.
- Irrational prices are showing - InBev (INB) is buying Anheuser-Busch (BUD) for $70 yet the market price is $58.50.
He also quotes Wood Dorsey of Market Semiotics:
"This is not the time to sell. If possible, it is better to just watch
and not act or even better, step away until Tuesday. Purgation can be over
at any time and be followed by a reprieve rally as occurred after Sept. 26,
2001."
No comments:
Post a Comment