Significant Risk in Equity Markets Even at These Levels

Adrian Day's Global Analyst
"Regardless of the immediate term, an ongoing economic slowdown and credit deterioration will lead to yet lower equity prices. Based on previous examples of credit unwindings, stocks fall anywhere from 40-80%. The S&P 500, which saw a high of 1549 last October, barely above its early 2000 high, is currently down just over 11%. And with corporate earnings slowing, the market is not fundamentally cheap, selling at over 20 times deteriorating earnings, yielding just over 2%. So there’s significant risk in the markets even at these levels." (4/14/08)

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