JAMES C. PERKINS JR. in front of one of his paintings. This market allows time for a portfolio manager to catch up on painting. Photography: Brian Bradley

Last week it was Baron’s, this week it is the WSJ running a story that is in line with my opinion of the markets.

“And a rising stock market does not necessarily mean the economy will keep getting better. The current rally ignores some ominous economic trends. Bank lending has slumped, and so, too, have long-term Treasury yields. Neither is a happy omen. And of course, in the real economy, the pain continues. Unemployment has risen to 9.7%, even as Wall Street has rallied.

“The boring truth about Dow 10000? This is a dull stock market for investors-in-waiting. Shares overall are somewhat expensive, although not by crazy amounts.

“According to FactSet Research, the U.S. market overall is nearly 17 times likely earnings. That’s above long-term averages of maybe 14 times earnings.”

“The Dow Will Hit 10000 Soon. So What?”

WSJ

by Brett Arends

Fri, Sept. 20 2009

by Brett Arends