Sun 19 Aug 2007
I just came across this nice quote from Bill Miller, Chairman and CEO of Legg Mason Capital Management: “The NYSE financial index is probably the best barometer of what’s to come. The financials tend to be a very good indicator of where the market’s going. They tend to lead the market because they’re the lubrication for the economy. So I think the financial index will tell you if this thing is over, and so far it’s telling you it’s not over. It’s still falling. But just as financials lead on the downside, they will lead on the upside.”
Know of any other good indicators for when this correction might be near an end?
August 19th, 2007 at 10:42 pm
Some people like to use the EMD:TLT ratio as a gauge of investor appetite for risk. As it falls, investors are shunning risk and/or seeking stability.
August 19th, 2007 at 10:43 pm
Oh yeah, and if hedge funds and mortgage banks can stop blowing up, that would be a good sign too. 😉