Big Difference between Price and Value - Seeking Alpha
If we measure the reactions in the news instead of market price graph, the conclusion could be that we are in the Phase 1 of the economic cycle. Some see recovery sooner, some later. The good thing is that with every passing day we are closer to the end of the downturn, anyway.
Most opinions are that the through of the downturn will be sometime between this quarter and mid 2009. The effects of monetary policy, conducted over the past several months, will take time to have effect in the system.
Looking a bit further ahead, there are opinions that investing right now, besides buying a pretty good value, also bears low risk of loss in the next 3-5 years. With all the bad things happening and the reactions to counter the effects, it is hard to imagine things getting much worse in the next couple of years.
If we measure the reactions in the news instead of market price graph, the conclusion could be that we are in the Phase 1 of the economic cycle. Some see recovery sooner, some later. The good thing is that with every passing day we are closer to the end of the downturn, anyway.
Most opinions are that the through of the downturn will be sometime between this quarter and mid 2009. The effects of monetary policy, conducted over the past several months, will take time to have effect in the system.
Looking a bit further ahead, there are opinions that investing right now, besides buying a pretty good value, also bears low risk of loss in the next 3-5 years. With all the bad things happening and the reactions to counter the effects, it is hard to imagine things getting much worse in the next couple of years.
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