Financial Times FT.com

The Short View

By John Authers

Published: August 16 2007 03:00 | Last updated: August 16 2007 03:00

Is there a buying opportunity in stocks? Many brokers say there is. They argue that earnings are rising, while price/earnings ratios have fallen to their lowest levels in a decade. So, "buy when there's blood on the streets".

The counter-argument is another stock market saw: don't try to catch a falling knife. Timing a decline is dangerous. On balance, it looks as though investors should still stand back from the falling knife.

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