Has the market bottomed or would go lower?

Market has gone down nearly 20% from May peak so far, there's two major opinions now:





Opinion one: S%26amp;P 500 will rebound to the neckline of 1260 and then would go down further, we're heading into a long long bear market, possibly testing the 2009 lows. - In this case we should reduce our equities and move to safer places when the market rebound to 1260 level;





Opinion Two: This is still a bull market correction, market is close to the bottom, we should buy more at this time.





This is really important for us how to handle the equities in our hands. I think the key factors for this question are:


1) Would Fed roll out QE3 in Jackson Hole meeting?


2) Would european sovereign debt crisis continue to get worse and worse and finally uncontrollable?





What's your opinion or could you share some good opinions you saw?|||Only Retrospect can reveal to us the answers you seek.|||There has been a considerable amount of panic selling. Whether it is over with yet is anybody's guess. I really don't see sovereign debt crisis getting any better. Governments are just too inept (all governments). Don't seem to be able to say no to spending and waste. The one here in the US is the absolute worst. Makes Greece look like Scrooge. I do remember back in 1974 when the average pe ratio was about 4. If that were to reoccur, we have yet a long way to go.|||Early in the year some financial gurus predicted a s%26amp;p at year end of 1346.


We reached that a while back then regressed.


So, I feel we will still end at 1346 or there about.|||You don't have to hit the bottom, you just need to be in the ballpark of it :)|||Although the fall in the Market was based on some hard facts (credit rating downgraded, default threat), the market over reacted and investors sold out of fear. It was caused by panic surrounding financial situations in US and Europe. The threat of default, then the downgrading of America's Credit Rating by Standard %26amp; Poor's from AAA to AA+ had a major negative effect on world markets. The financial situation in Britain may have been a contributing factor in the London and later Liverpool and Manchester riots. In France there were fears that their credit rating could be downgraded from its AAA rating as well. Many of the stock market falls were caused by investors pulling out due to speculation, not hard economical facts, and as a result many shares are now undervalued. It is hard to tell whether the market will go down any further or whether it will go up, however we know for sure that small cap shares and less followed shares are now undervalued and bargains are on offer. As an investor I believe it is a good time to invest in small caps before market correction takes place. Market Correction will come into place within the next 5 days or so.





This week wasn't the end of the World however a market panic, i give you my strong belief that the market is at a low we want see for the next few months as economic recovery brings new business opportunity. I do believe a QE3 will be rolled out or at least an expansion on a QE2, this will be until a concrete path for recovery has been sealed. European sovereign debt crisis will get worse but will be put more into perspective and will be handled by currency correction, expect to see more pacific growth and lending.