Trying to predict short-term moves in the Stock market is not possible....all you can be sure of is that if the fundamental natures of human greed and human fear stay the same, then over the mid-to-long-term the Stock market will average a return better than Bonds or Real Estate, but not as good as being in business yourself....in practical terms that means you can rely on an average annual market return of between 7% & 12%...
The long-term average P/E ratio of the combined stocks of the Dow is about 15...
At close yesterday, the P/E of the Dow was 16.32...
That would seem to suggest that there is some downward pressure from 16,912 (yesterday's close), and that even with the encouraging GDP numbers, there is some room for a downward correction...
Up 4% in the second quarter and down 2% in the first quarter net - up 2% which is not a healthly situation. The drop in the first quarter WAS NOT caused by the weather, it was caused by the over reach of regulations instituted by the government.
The economy has not recovered in the past 6 years and when they start reporting the actual unemploymnet numbers you will understand it much better
Because they know the US govt is lying.
4% GDP increase in 2nd quarter (showing that 1st Quarter's negative GDP was due to bad weather), goes above most people's expectations, and the Dow Jones remains negative?
Why is this?
