How Low Can It Go?

by Comstock Partners Team Comstock Partners Inc. We believe that the market has further to go on the downside. The stock market would have to meet a few more requirements for us to at least move to a neutral stance before we hopefully can turn bullish. The first requirement is for a "wash-out" event of public capitulation precipitated by major redemptions of equity mutual funds and massive selling of equities by the public, hedge funds, and the institutions that are forced to liquidate due to public redemptions. The second requirement would be for stocks to trade down to the levels that we would consider attractive values. We have been updating the "Limbo, Limbo, How Low Can it Go?" article on the right side of our home page every few months, and it has recently been updated. Ever since we authored "Limbo, Limbo" in early... [read full story]