1.Market leaders are buying eg Warren Buffet and Jeremy Grantham, Jim Rogers (commodities)
2. Av PE plus CPI average is less than 20 (11.1 + 4.4 = 15.8)
3. Government bond yield / all ords dividend yield is less than 2 (5.6%/4.8% = 1.2)
4. long term bond yield / earnings yield is less than 1 (5.6% /8.8% = .64
5. 94% of capital gains are made between Nov & May Things usually get better at the end of Oct.
6.VIX has dropped from last week, but it still remains high, indicating investors' fear in the marketplace
7.most analysts are saying buy . A survey by Allan Kohler of 10 top analysts shows seven think we have bottomed and 3 say we haven’t
8. the PE for the market is below 10 ... 8.69 historically it hovers around 14
9. we have also seen investor panic and capitulation and despair that we normally see at market bottoms.
10. everybody is saying "cash is king"
11. rba around the world are cutting rates the US will probably start giving money away for free.
12. the average fall in markets over the last seven bear markets is 34%. We are down 44%
13. when the a recession is officially acknowledged ie 2 quarters of negative growth then that is usually thought to have bottomed however this hasn't happened yet
14.LIBOR is loosening up
15.the TED Spread increased, indicating that banks were less willing to lend to each other even though the government is pouring on pressure for banks to get increase lending.
