The Day Ahead: Join the Reality Club
The hottest word on Planet Financial is oversold. Every which way I turn, that term is being used with reckless abandon to explain stock prices. For those extra fancy technical folks, out comes an array of dots, lines, and shapes to support their oversold musings. On the other side of the spectrum, the fundamentally driven crowd crows about "cheap P/Es" and gobs of corporate cash just waiting to be deployed. Oh, and expectations are that the fiscal cliff situation will be resolved to a satisfactory degree by the second week in December.
While I totally respect the work of fellow market peeps, I don't think all of this really matters. A low P/E multiple? Well, this market doesn't seem to care about that perception -- stock prices continue to adjust lower for a future that is predicted on the present. As for sexy lines overlaid on a Bloomberg chart, why waste the precious minutes to draw them? The market is sharing a tale of justifiable gloom, which requires new lines to be drawn by the close of trading....586 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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