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Idiocy continues as bargains end



March 17, 2010 – Comments (4)

Quite simply, the markets are becoming a little frothy. As we are finally entering the parabolic stage that I expected last year, I find it almost impossible now to identify any compelling bargains. There are still quite a few stocks that I would like to hold at these prices, but almost no stocks that I would like to buy. 



4 Comments – Post Your Own

#1) On March 17, 2010 at 11:19 PM, ChrisGraley (28.51) wrote:

As far as the game goes, I'm not buying anything now. I'm just closing picks.

I'm looking for a really up day right now, so I can red thumb a bunch of junk companies,

The p/e of the S&P is a telling number right now .There will be another quick spike down and many bargains will be found this time. 

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#2) On March 18, 2010 at 9:11 AM, rexlove (99.69) wrote:

I wouldn't exactly say the S&P is at frothy levels.  I like to look at S&P's website to look at the actual numbers and get a reality check. Here's the facts: 

1. P/E (as reported earnings) as of 12/31/09 is 22.80

2. P/E based on earnings estimates of $15.81 for quarter ending 3/30/10 and a S&P index level of 1166 is  19.62

NOTE: Actual earnings have been beating estimates for more than a year now and by a wide margin so this P/E number should even go lower.

3. Median P/E since 1988 is 21.87  


Is the S&P Frothy??? Clearly no. Is the S&P at a bargain?? - probably not either unless earnings estimates are way low. Sure we can get a small pullback here but I'm staying bullish on the overall market here.  

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#3) On March 18, 2010 at 1:48 PM, Teacherman1 (< 20) wrote:

Selling some and taking profits because I expect a correction. Not huge, but one that will give me some buying opportunities that are at a price to get my upside/downside ratios into place for my longer term holds.

After the run up we had recently, I expect there will be profit taking, and some will get nervous because it isn't going "straight up".

I also want to see what happens when the funds do their end of quarter "window dressing", and more importantly, what happens right after that. 

Hope no one is getting "killed" today, either in their CAPS picks or in Real Life. 

JMO and worth exactly what I am charging for it. 

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#4) On March 18, 2010 at 2:06 PM, bigpeach (27.63) wrote:

I dunno, I think I found a bargain in puts this week. :)

I'm not sure I'd use the word frothy, but yeah, it's been a while since I saw a company I considered a compelling value. Haven't made a purchase this year, with the exception of the small amount of money I keep for trading.

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