Is there a stock market crash in your future? CBS correspondent Alexis Christoforous says there could be.
“[T]he avalanche [Oct. 19, 1987 stock-market crash] was made worse by computer program trading, but the things that triggered it were overvalued stocks, a weak dollar, a period of extreme market volatility and a summer of worrying economic news,” Christoforous said on the October 14 broadcast. “Sound familiar? Some market strategists are warning investors now to strap in.”
There’s no doubt there is risk involved when investing in the stock market and historical data should play a role in smart investing. However, the comparisons of stock values from October 1987 to October 2007 aren’t accurate according to the October 15 Wall Street Journal.
“Stocks don't look as overpriced today as they did in 1987,” E.S. Browning wrote. “Today, the companies in the Standard & Poor's 500-stock index trade only a little above the historical average of 16 times profits for the past 12 months. In 1987, the S&P 500 was at more than 20 times profits.”
Even though there are stark differences between the economic climate in October 1987 and the economic climate in October 2007 – Christoforous told viewers to be on the watch for the “Black Monday, part II.”
“Can it happen again? It could,” Christoforous said.
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Will CBS ever get it??
October 15, 2007 - 19:40 ET by DCC1Will CBS ever get it?? Sadly I think I already know the answer. The network could have 2 viewers and they would all sit around thinking, "You know if we report even less news, add alittle more liberal spin, and put a big middle finger up on an American Flag we will be more in touch with our target audience"
Crazies to the left, and Whimps to the right
"But some bloggers write..."
October 15, 2007 - 20:24 ET by saw the light"Some market strategists are warning investors now to strap in.”
Good journalistic verbiage. Say "some people say..." for anything you are writing, and, Presto! Instant counter argument.
Bush says progress is being made in Iraq, but some Republicans say...
General Petraeus reported decreased insurgent activity, but Iraqi officials say...
The economy has showed robust growth, with job gains, stock market advances, and low unemployment. But some analysts say...
However, this tactic is not invoked when the subject is a Democrat or criticism of a Republican. The double standard of the news media continues. The most shocking thing to me is that the continue to deny it. Do they really not see it, or are they that blatantly biased?
"There is a tendency for the world to say to America, 'the big problems of the world are yours, you go and sort them out,' and then to worry when America wants to sort them out." - Tony Blair
They are running out of
October 15, 2007 - 23:15 ET by MidAmericaThey are running out of time for talking the economy down before the election. Nothing would more guarantee a dem win than an economic downturn. It would be a two-fold win for hillary. She could get right to work after the election implementing all kinds of New Deal programs.
Maybe she can get us some English style dental care.