bluntlysaid

One of the dozens of speakers I’ve heard talk over the last few months said (and I paraphrase): “There was a bubble in the market because all of the savvy investors that found higher than expected returns were followed by unsavvy investors, driving the price up all the way until there were no buyers left.  Now, the bubble has popped and the savvy are selling high.  The unsavvy will follow suit and sell as well until there are no sellers left, and those who are in the know will start to buy again.”

It seems like we may have reached that point today: 

Strategists at Deutsche Bank say they now think the market is looking cheap. “We can finally make a case for equities being “cheap” for not only the first time in this crisis but for the first time in at least 14 years,” they said.  -WSJ, 3/3/09