Quote:
Originally Posted by mmahany
It sounds like most of you are basing your hypotheses entirely off technical analysis. While I agree that technical analysis should be strongly considered, I am a big believer that fundamental analysis will win every time in the long run.
The last two big runs we had were in the very late 90s and then in 2007. In both situations the proceding recessions were a direct result of significant flaws in the market.
In the late 90s everyone and their brother was starting up an internet business. Companies were trading at ridiculous prices relative to their earnings and even their earnings potentials.
In the mid 2000s there was a serious lack of regulation with mortgage backed securities. When the housing bubble burst, mortgage backed securities (that were considered AAA in most cases) had a horrible price correction.
Until I see a significant economical flaw in the market, I see nothing to support a correction to the level some of you are suggesting.
I will go on to say that companies like Tesla and 3-D Systems had some good runs, but I expect a sharp pullback with both in the near future. Both are trading at their current levels because of hype rather than their fundamentals.
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What fundamental analysis are you speaking of? Think about the debt ceiling and the budget deficit and Cyprus, Italy, Greece. The only reason the market is in super bull mode right now is because of the fed's continuous $85 billion pump into the market every month. Once the POMO is over we will be in some trouble.
I don't even think a 10-13% pull back in the market is even a huge correction. I think that is a very healthy pull back for the market to go higher. Remember in 2011 when the market had a nice run and in June we had a major correction (~20%+).
DDD is a good company with a high growth rate, IMO. 174% EPS growth rate. It is heading much higher, IMO. Chart is picture perfect.
I really think the solar sector is a bubble ready to pop. Many of the solar stocks has been soaring 100%+ in the past month.