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Monday, October 13, 2014

Market Thought... bottom

Serious concerns:

1. Ebola headline risk

2. IS continued advances

3. Russia (which facilitated the Germany slowdown)

Projecting earnings through December we can see at current SP500 levels, the market will have a multiple of high 16s. The market is either discounting lower earnings or being inefficient. 

The market conditions were the same as they were a month ago: low rates, decent earnings, robust US economy. The difference, fear has allowed the market to correct. 

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