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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: sea_biscuit who wrote (16899)10/20/2002 6:34:40 PM
From: Wyätt Gwyön  Read Replies (2) of 42834
 
Maybe when we get to S&P of 600 or so, we will begin to see cyclical bulls...

that presumes the market corrects only to a reasonable valuation. however, if history is any guide, the market will eventually become underpriced. just think if it becomes as underpriced as it was overpriced. think it can't happen? it has happened in all past bear markets. if that happens, i will not be surprised to see the SPX below 300.

having said that, i will begin to initiate some long term index positions when the SPX hits 600. i would think a real return of 5% is achievable from that level (compared to a real return of perhaps 3% at the present level, imo).
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