http://www.distressedvolatility.com/2009/10/joe-saluzzi-is-not-buying-this-huge.html # If you're looking at a forward P/E over 16, that prices in a vibrant economy, not an economy that is still suffering. # Regarding banks: Fed is giving away money for free and they lend it out at 5% (easy money). # If the economy is so great, why is the Fed keeping interest rates at 0%?. # "I'm betting still that... [more]
http://www.distressedvolatility.com/2009/10/joe-saluzzi-is-not-buying-this-huge.html
# If you're looking at a forward P/E over 16, that prices in a vibrant economy, not an economy that is still suffering.
# Regarding banks: Fed is giving away money for free and they lend it out at 5% (easy money).
# If the economy is so great, why is the Fed keeping interest rates at 0%?.
# "I'm betting still that the problems that we have in housing and unemployment and the deficit rising are going to trump all of that".
# Foreclosed shadow inventory will put pressure on housing.
# Realistically we have to be 15-20% lower to start. Looking at cyclically adjusted P/E and the Q-Ratio (total price/replacement cost) he sees a 35-40% retracement.
# The market is not efficient.
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