STREET DOGS
Value will be hard to find
From Jim Slater, signs of an upcoming bear market, writes Michel Pireu
From Jim Slater, signs of an upcoming bear market: Cash is usually regarded as a very undesirable asset. As a result, the cash balances of institutional and private investors will usually be at very low levels. US fund managers describe the mood well: "cash is trash". Value will be hard to find. The average price:earnings to growth ratio will be 1.5 or more and there will be few, if any, stocks at a substantial discount to asset values. The average dividend yield will be at historically low levels. Interest rates will usually be about to rise. Certainly, the chances of them falling further will be minimal. Broad money supply will usually be contracting. New issues will be rampant and of increasingly low quality. The fundamentals of each issue will be less relevant to investors than how many shares they can get hold of to make a quick turn and be ready to subscribe for the next one. The ratio of directors buying to directors selling will have fallen to historically low levels. Shares...
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