US Debt deal may result in spending cuts and economic slow down.
Reasonable P/E Ratio
Company earnings have been reasonably good and current P/E ratios look reasonable.
Aug 2011: S&P500 TTM P/E ratio is around 12.
Indiscriminate selling usually signals a market bottom.
Aug 5, 2011: Major averages fell ~7% within few days and the US indices are in correction territory (> 10% drop from peak).
News in the media is too negative and pessimistic - double dip recession, sovereign debt problems, etc. This is usually a contrary indicator.
Sea of Red
For the first time in history, all 500 stocks in S&P500 index went down!
No Panic Among Pros
Aug 2011: Per Investors Intelligence Survey, market bulls actually rose to 47.3 percent while the bears dropped to 23.7 percent.
Sep 7, 2011: Bear/Bull ratio is now suggesting pessimism among investors.
Domestic outflows, excluding ETFs, hit $9.4 billion last week, surpassing the $9.2 billion outflow during a week in October 2008 and the most since 2002.