Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: valueminded who wrote (2580)	7/17/1997 3:53:00 AM
From: White Shoes	of 94695

True, there is a lot of cash out there. So why stocks? Not "rate of return". That's just on paper. Why not real estate? Or commodities? African toads? Food? TV's? Corporate earnings must keep up with these valuations or these other items, and many others besides, become more attractive. When no one spends their cash on any of these other things...companies' earnings decline/level off. Or...on the other hand...if people spend what they think they got because they have equity in stocks, then this touches off inflation, which will push up interest rates. THE BUSINESS CYCLE HAS NOT BEEN REPEALED. I believe the bear market decline will be massive once it starts. I, too, saw something on TV about the trillions in cash just waiting to soak up more stock. So you could be right, the market could go up and hard. In my view it will be chasing worthless paper at that point and will come down harder.

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