Market Crash - Brushing off job data

The job data didn't mean much. It doesn't count people who are out of work but no longer looking (the 'government cheese' set). It was barely a beat on expectations using rigged data. I mean if it has missed that would have been worse, but a tiny beat wasn't going to do much.

Eurodebt, global secular growth slowing. These are the bigguns on the table.

A miniscule inscrease in already low job data pales in comparison to what is happening in Italy and the rest of Europe. Small potatoes my friend...

It's not really a crash or a panic until you lose 30% in a single week.

This is a mere correction. It's also very good news for savers under age 45. The cheaper stocks get, the higher dividend yields get, the more money you kids are going to have in 20-30 years.

Wait for P/Es in France, Italy, and Spain to hit 7-8. Then it's time to start picking up cheap, well-capitalized companies with strong dividends that sell into an international market. If they are paying 5-10% dividends, that's just icing on the cake.

You know there might be one act of self defenestration in 1929, and now everyone expects people to jump when an index drops steeply.

Volatility is a normal part of this business. Dow was down 200 just an hour ago; now it's up 100. When people are frightened, they don't think rationally. And the people with cooler heads will prevail.

It's up 100 off of news that the ECB is QEing the Italians and Spanish, or is willing to under certain restrictions.

Really? Most folks would have just said suicide or head chopped off. Oh well, I'm sure all of the English majors are on tenterhooks.

"auto-defenestration" would have been cooler.

I was having a conversation yesterday with my mate in Australia yesterday who probably puts the D in doom merchant at the moment...

This though was a 'gem' of a paragraph from him.

It went...

When European countries begin to collapse, the forces of human nature and capital markets will take over. Greed won’t go away, it’ll accelerate and eat its own arse right up to its own ears before it dies. First, the rich and wealthy will flee the dying states, to their islands, their super-yacht's, their hidey-holes, gouging their money out of everywhere and anywhere, and hording it in gold, oil, harems, or other such convertible securities. Eventually, when say Greece is little more than a discarded piece of toilet paper (possibly by close of business Tuesday), some wealthy oligarth will eventually decide to buy the country, privatise it, and run it like a sweatshop, thereby restoring peace and competing against China. They will do this by legal slavery (aka ‘hiring through scumbag recruitment agencies’) and effectively , the capitalist market will turn itself into a communocapitalist shoppingcentre, where the citizens are no longer nationals, they are ‘kaisha-in’ (japanesey for ‘company people, for life’)

Made me smile , and believe you me...I haven't had a lot of chances to do that recently.

We're finally trading a valuations that are realistic. To me it's a breath of fresh air. All this Quantitive Easing & 'shakeoffs' had a lot of investors really believing we were coming out of recession. The truth is that we're really not that far from where we were a year ago. It just so happends that instead of gradually correcting, we had a snap back due to a lot of negative current news ATM..

12.5x Earnings on the S&P ain't cheap- at least relative to 2009, but it's not expensive either.

Long-term secular bear cycles tend to end with the S&P around 7-9 x earnings, but if we follow the 35-year valuation cycle, we've still got at least 4-7 years of dividends, inflation, and (yes, meager, but still) economic growth until we hit bottom. This could very well be a good buying opportunity. At the very least, there have been much worse times to buy

In particular, there's some nice dividend-paying tech stocks out there. Europe also looks pretty darned cheap.

I think he was very much being tongue in cheek when he made those comments , I only reposted them here as they were so left-field and made me smile with the outlandish view.

I kind of realise though that most of us here have been bombarded with every man and his dogs comments and thoughts about what is happening and what will happen that even the most outlandish of views , even when made in jest, suddenly can become a tad plausible and rational.

Stay lucky gents and good luck.

What I posted was something that made me smile when I received it and might make some other folks smile , hell we need it at the moment.

Good luck mate.