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In previous stock depressions, as in 30 to 80 the P/E reached even 6. To get to that level, the S & P 500 should be at 400 points and the DJIA at 4,000, 40% below current values. Alarming, but not impossible in the current context. It is then time to get the hell to buy? Does not seem to be it. Bad news keep coming, but that is not the problem that the market fails to break away from the minimum but still searching for them.

There is a deep feeling of bear market (bassist), who salvage the economy plans do not seem to excite, nor money seems to reach. In a bear market like the current one, no matter what kind of news is announced, both good and bad will do to the stock market collapse. When the market manages to find an apartment and begins to form a trend of suba, the good news is capitalised driving up the market, and bad will pass virtually unnoticed, either will not impact to the extent that investors expect. It is that during times of investor panic, psychological sentiment is so strong that he manages to knock down any good data economic or rise in the profits of enterprises, and thus the public follows assets, underestimating the potential good news for the economy. But when this feeling beat is achieved, giving rise to greater optimism and more favourable prospects about the future on investor mind, by more prevailing negativity in economic data, these won’t spread to the market. And that this is precisely the moment that the investor world is waiting. We must be vigilant not to the economic news, but to how the market receives them. Corporate profits of the S & P 500 may fall 35 per cent in the first quarter and by 15% in 2009, according to estimates by analysts compiled by Bloomberg.