« ON SOME WIRELESS INNOVATION | Main | ON DEALING WITH STAR TREK »

Saturday, May 09, 2009

Comments

Alex Tolley

The glass is always half-full for Abelson. In this case however, I have to agree with the bearish sentiment. The market has rallied nearly 2000 points from it's low, but the question is, what is fair value? So far it looks as if there is little assumption of reduced earnings. This seems strange given the reduction in outstanding credit and the failure of huge M0 injections to reinflate it, plus the continuing impact of falling house prices, bankruptcies and recessionary unemployment. Is there any chance the rally is just the M0 being diverted to securities rather than credit? I'd love to see some analysis of money flow to get a handle on this.

The comments to this entry are closed.

Some of the Blogs I Like

July 2011

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31