Market Review and Trends
Trading Strategy in an Inflated Market
By healthytrading  •  April 11, 2012
Let's admit it that the market has gone too far. Valuations (P) have outstripped earnings (E) far too quickly and for the market to move further ahead, it needs to seek a breather. Well, basically either the P decreases, or the E has to increase to match a 'worthy' evaluation. The first quarter of 2012 was basically brought about by a couple of changes. 1. Greece unlocking itself from the debt abyss; hopefully. 2. Improving US economic health 3. China seemingly avoiding a hard landing If it is not clear enough, 2 out of 3 of the main factors contributing to the market's rise has been based on speculations and psychological perception of the future. Only the improving US economic health is real and based on truth. We know the market is forward looking so there is some sort of an element that this is what we all expect. But ......
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By healthytrading
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