Monday, June 15, 2009

Barron's Roundtable Head Scratcher

This weekend's Barron's provided a mid-year update to its annual "Roundtable" report, and as the title of the article suggested, the consensus among panelists was that the market has come "too far, too fast." While that view is certainly not a minority opinion, we are confused with the logic behind it. As noted in the article,

"Many predicted at our Jan. 5 confab that the stock market, oversold and under-loved, was due for a major bounce. Now they think stock prices have overshot corporate fundamentals and a correction is in order."

So on January 5th, when the S&P 500 was at 927, the members of the Barron's Roundtable were looking for a major bounce. Now, with the S&P 500 up 2% since then, they think the market has come too far, too fast?

S&P 500 Barrons

No comments:

Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.