Sucker Rally
Categories: Trading
The stocks were expensive at 35x earnings. They were growing only modestly, and the world's economies were getting tighter. So the group fell to "only" 30x earnings, then bounced a bit to 32x earnings. Investors buying the sucker rally paid up and bought them at 32x earnings when they probably should have been trading a lot closer to 23x earnings or worse.
Suckers.
