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The Closing Bell: Stocks Sells Off In Volatile Afternoon Trade As Fed Points To 3 Rate Hikes In 2017
Yep ... that's what big money does. Runs the market up and then cashes out!
They buy low ... drive the markets upward ... and, then sell on disapointing interest rate increase news. And, then they repeat the process again. Why was this not expected? What did you think they were going to do, bet the come line and then bid the Index higher on 2017 Forward Earnings Estimates of $133.00? That is 33% higher than where the Index will most likely finish 2016 with a TTM P/E Ratio of about $100.00.
Folks, the market (S&P 500 Index) is currently very expensive with a TTM P/E Ratio of about 25 as reported in the WSJ. With this, I'm thinking it's going to drop further.
Perhaps, in the nearterm, at about 2135 I'll put my buying britches on.
Comments
They buy low ... drive the markets upward ... and, then sell on disapointing interest rate increase news. And, then they repeat the process again. Why was this not expected? What did you think they were going to do, bet the come line and then bid the Index higher on 2017 Forward Earnings Estimates of $133.00? That is 33% higher than where the Index will most likely finish 2016 with a TTM P/E Ratio of about $100.00.
Folks, the market (S&P 500 Index) is currently very expensive with a TTM P/E Ratio of about 25 as reported in the WSJ. With this, I'm thinking it's going to drop further.
Perhaps, in the nearterm, at about 2135 I'll put my buying britches on.
Skeet