My analysis here in North America matches Keith's, as does one done by a friend in Australia. Mine & my friend's include technical analysis alongside the historic fundamental approach. There is a fan distribution top being formed in the S& P 500 index (500 largest US public companies). The next few weeks are critical. If the market can't rally above long term moviing average (200 day) and hold above it for some months, the liklihood is that the loews of last October will be tested. In my view they will not hold, and valuations will then have a significant reduction to the P/E levels Keith mentions. The big unknown is what the earnings themselves will be. If they drop, say 25%, the stocks might have another 50% to drop!
Steve -- http://magma.ca/~gpco/ http://www.scientists4pr.org/ Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.--Kenneth Boulding
