Today there was a lot of bearish news. After the stock market had been going up with minimal dips for six month it finalled dipped with the SP decling 2%, Nkkei down 1.8%, Shanghai down 2.6%.
Robert Shiller forecasted continued price declines in housing of up to 25% in some cases. CoreLogic said NAR had overestimated the number of home sold since 2007 by 20%. Oil exploded upwards with some gas stations charging $4 a gallon for Regular gas in California.
Last week week Bloomerg article comemnted that is is unusuall to have a rally for so long with no dips-well now we have a dip! Does that mean it is time to buy on a dip? No. When the PE ratio goes to 8, or 9, or 10 then it is time to buy. This would be about 600 or less for the SP.
Independent investment advice is needed now to protect for being mislead by sell-side brokers.