Why all this talk of the market 'about to crack', I could have sworn the market cracked in the last two weeks.
I think the market was overdone, too far too fast, though didn't expect such a violent turn. It could get worse, but consider that markets are probably at a roughly fair valuation right now, versus well inflated before GFC. Some of the P/E's are really low, and some companies are again heading towards situations where net assets exceed stock price. Quite a few large stocks are 1/10th of their heights from two years back, I don't see them going down this dramatically again from current levels.
The growth in China for the last year has outstripped most estimates from my understanding, did it even dip below 8%? So I guess you can take this as the market overdoing it's initial correction, or China having just delayed the inevitable slowdown (I'm not sure the term inevitable is ever appropriate when applied to the stock market).
So cautiously optimistic, not because I think the market is in good shape, but because feel negative sentiment is overdone (i.e. apparent absence of any positive outlooks).
