Ghost of Igloi wrote:
agip,
One can look at momentum indicators, stock charts or any other non-fundamental reason to justify the market moves. In the end the direction of the market will be determined by stock valuations relative to corporate earnings, not Federal Reserve policy, non-GAAP earnings, stock buy backs or any other transitory factors. Either corporate earnings continue to grow to support stock prices or they do not. For anyone to believe differently ignores the history of the market. Nothing that has happened the last two months, including the big down days and subsequent rebounds, changes that opinion.
Igy
fair 'nuff - you brought up technicals first tho with talk of the 52 week high/low stat - I was just responding.
anyway, I read some paper at some point that, as I remember it, showed that corporate earnings and stock prices are not correlated until you get out to 3+ years.
or maybe it was GDP growth and stock prices aren't correlated. Can't remember.