Well, entirely possible.
I had thought the market overpriced by 20% at 10,831.07 (DJI close one week ago, 10/1/08) but maybe I’m not gloomy enough. Ian Welsh at Firedog Lake makes a convincing case that you should be looking for 7:1 p/e which he calculates as Dow 6000 and that may be where we are heading.
In Europe they are nationalizing banks and frankly it’s a more cost effective strategy than buying the 40 x leveraged paper. The Brits just committed 250b pounds ($500b) and that’s a chunk of money.
Expect the US market to rise delusionally because this is all good for John McCain.