Friday, October 10, 2008

...A little optimism..

So far I've been silent on the current financial crises. Mainly because I don't have a stunning knowledge of financial markets (though I think I know more than most the talking heads you see on TV news).

Anyway, watching the market go down and down there is only one fact that I find comforting, Stein's Law. Stein's Law is that if something cannot go on forever it must stop. Just as the market in the late nineties couldn't keep going up and up, the current market cannot keep going down forever. Today the Price to Earnings ratio of the DOW reached it's lowest level in 23 years. Something will eventually give.

Hang in there.

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