So how have the markets been?
Well, they were rising steadily for a few months, but since June 12 sentiment has shifted and stocks have been falling. Could this be the start of a long series of tests of previous levels? Maybe. Could this be the start of a test of the March 9 lows as some pundits are predicting? I seriously doubt it.
We will not be revisiting the levels we saw in early March. If we do, I will be buying.
Stocks I am currently watching include Caterpillar (CAT) for my wife's RRSP and Canadian Pacific Railway (CP) for our non-registered portfolio.
2 comments:
MG, the forward and trailing PE multiples of the S&P at the March lows were 11.X and 17.0X, respectively. Currently, they sit at 14.5X and 23.3X. We had experienced lower multiples in the bear markets of 1990 and 1987.
So unless earnings rise more than expected, what makes you almost convinced that we won't see the March lows or even lowers lows?
Thanks for a great site b.t.w.
-Jay
multiples aside I just don't think we'll get the the sentiment level we were at in Feb/March. Bank health is probably the largest reason why I feel this way. The economy is bad, but the system is in tact.
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