Zeev's Turnips Patch-No Politics (ZEEV)

[Babylon]

...but the economic situation is deteriorating and causing valuations to be pared back even more with a continuously dropping target as we go down.

Mlsoft, I'm curious as to your deeper thoughts on this. Are you implying that if we currently had a good economic situation, that valuations/stock prices would be higher than they are today(?) - keeping historical valuations in mind. I'm thinking along the lines of the early '70's bear, and how the economy improved dramatically after that, while the market essentially traded sideways for many, many years, while valuation caught up....perhaps my history is off.

It seemed to me that you were suggesting that with a better economy today, that higher multiples - and the valuation correction (which I believe is entirely a inflated credit issue), would have been completed by now. Please correct me if I'm wrong... TIA