Thoughts and discussions in economics, finance and history, with focus on China's interactions with the global economy.
Thursday, May 14, 2009
Prudent Bear: S&P 500 to go down to 400
Being as provocative as it is, the history of stock market shows big bear market often ends with overshoot on the downside (another way of saying mean-reverting). We haven't seen that, not yet.
Plus, with recent market rally of nearly 40%, the market no longer looks cheap.
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