Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

market, these are fundamental measures, and eventually the weight of these (and many others) will bring about a severe bear. But here is a list of "positive" fundies:

Low interest rates make equities attractive at PE of 20 even without growth.
The economy is still growing at 4% to 5%.
China/India economic engines are far from holding.
Even Japan GDP is pegged at 7% growth *unheard of in 10 years).
It is an election year, almost assuring engineered exuberance till at least June/July (apparently that is when people make their mind on the economy's impact on their voting).
Greenspan is not going to surrender until he has completely run out of ammunition, and when that is done, he'll use Greenspeak as an alternative (g).
There are only islands of asset bubble, not many. (very unlikely that two consecutive bubbles occur in a three four years period).
Consumer have used the low rates to reliquify, and actually their net worth is at a record level.

Your negative list is incomplete, as my "positive list" is incomplete. You should have added:

Many islands of excess capacity have not been wrung out.
The domestic economic growth is not creating jobs, a necessity for a self reinforcing recovery.
Osama is going to get captured soon
Zarkawi will be captured before Osama
Iraq has a temporary constitution and "will" have self rule by June.
You can, once more, get French wines and cheese here....