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Strategies & Market Trends : Sharck Soup

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To: velociraptor_ who wrote (23303)5/16/2001 8:33:47 PM
From: Bid Buster  Read Replies (1) of 37746
 
and then another few thousand on top over the course of another year?..

i think that time frame is highly unlikely velo and i see this pop as an aberration.
as you well know 35% corporate bonds are at or near junk ratings and credit quality continues to deteriorate.
many of those bonds come due later this year and early next year, given the low cash reserves of many of those companies those payments will be in default.. and we've all seen the result of what happens to equities when a company defaults on its bonds..

on a short term basis i can see some limited upside based on t/a but on a longer term basis i see equities hitting the skids to new lows, after all balance sheets do matter.

so i ask, what do you base your long term bullish outlook on?
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