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Friday, September 25, 2009

American stock rally will end shortly

American stock market rally will end within 3 months. because the economy is not improving fast enough. S&P 500 will come around 900 or 850 level. the S&P 500 climbed as much as 58% from a 12 years low in march. the economy is in bad shape. so many people are trying to be optimistic. we have gone from over sold to overbought. the S&P 500's six months rally pushed its valuation to almost 20 times the respected earnings from continuing operations of its companies, the highest level since 2004. government stimulus money is making the economy look healthier than it is entire financial system is operating in the good grace of government intervention.

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