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Strategies & Market Trends : Are you considering quitting your dayjob to daytrade?!

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To: AnnaInVA who wrote (69)1/17/1999 1:58:00 PM
From: Bonnie Bear   of 611
 
bottoms of bear markets tend to concide with some observables..
1) maximum unemployment in a society (people sell their assets to eat)
2) interest rates that have peaked and are now coming down, in the case of "inflationary" bear markets
3) valuations on assets that are substantially below "book value", that is, if the company assets were auctioned off it would be worth a great deal more per share than the stock price
4) some event that makes the holding of stock assets more desirable than previously thought (political change, something else is worse, etc)
5) bankruptcy of weaker players in depressed sectors.
6) capitulation, seen as a billion-plus-share selloff trading day.
BTW REITs, commodities and microcap value, and most foreign stocks, meet (3)...
The only thing holding up the U.S. tech stocks is the derivatives market, fueled by the drop of interest rates, IMHO.
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