Posts filed under “Technical Analysis”
One of the themes we keep coming back to is the so called efficient market hypothesis. We simply don’t buy into the near religous belief that markets are perfect, omniscient processors of information.
Today’s example comes from a NYT article about ENRON, the biggest ever corporate bankruptcy in the United States.
Where, pray tell, is the efficiency there? The information that Enron was giant fraud was out, and yet the stock took over a year to collapse.
Efficient? P’shaw . . .
Big Test Looms for Prosecutors at Enron Trial
NYT, January 26, 2006
As promised, today brings us to the 4th in our series of charts: P/E vs S&P500 click for larger chart courtesy of Mike Panzner, Rabo Securities > I’ll get into the significance of what this means to the markets later, but for now, note where the P/E is over the median, and its impact on…Read More
It seems that the melting polar ice is becoming more of a concern to Alaskans than those of us in the lower 48. click for larger graphic courtesy of Anchorage Daily News > Thank goodness there’s no Global Warming — imagine how much more of Alaska would be melting if there was! > See also:…Read More
Have a look at this 100 year (actually, 105-Year) chart. I colored each “Market” appropriately — Green for Bull, and Red for Bear — to more clearly show what happens. Bull markets get ahead of themselves. At their ends, they tend towards excesses that take a very long while to recover from. When a long…Read More