ajtj99's Market Pulse

[market_watcher]

Maybe this thing has legs still.

Looks like the 11am new highs I was looking for arrived right on time.

The market has become, in my mind, as irrational as the lottery. There is no way in hell people are going to recover their investment over the long term. As I've said before, the main thing I fear is that those of us who didn't buy into the mania may end up losing more in the long run, not because of any short-selling losses we may have, but because of the policy implications at the national level when all this stock market wealth goes to money heaven. People like ourselves, with high incomes, are going to get soaked to pay for these peoples' mistakes. At least, that's my working hypothesis at this point.

This was the first decent chart that I could find of my other point, which I was thinking about the other day. We may be making a H&S on the long-term PE ratio chart for the S&P500. There are obviously a ton of caveats that go with this.



This next chart gives a better view of the portion of the first chart that was cut off in the first chart.