Thread: Financial News
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Old December 6, 2018, 11:39 AM
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zman zman is offline
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As I indicated couple of months back, the writing was on the wall. With the bull run getting long in the tooth, stocks getting historically overpriced, the looming trade war with China and the possibility of Dems winning the house, the markets were bound to crash. I didn't even take into consideration the inverted yield curve. If anything the bull run lasted longer than it was supposed to because of Trump.

Glad I bought all those put options to protect myself. Just when I started thinking they'd expire without any value I find myself down only a few percentage points from the market highs. The US economy is doing great and will continue to do fine for some time. Fact is the stocks got overvalued at some point. I think at 27,000 Dow stocks were trading at 18 PE where historically they traded at 12 - 15 times. Now they're already down to 15-16 PE. I think most people got complacent in the last few years as one didn't need to think too hard to make easy money. Going forward there will be plenty of opportunities. We just have to research harder and identify them.
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