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

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To: Justa Werkenstiff who wrote (819)7/8/1997 9:50:00 PM
From: Investor2   of 42834
 
RE: "Try not to focus on the specific Dow numbers. Even BB admits to not having a crystal ball. The correlation is key."

Check out the graph on page 32 of Dent's book and his explanation at the divergences on page 33. Assuming that his theory is valid (I haven't decided whether I believe it yet), the current market levels could be rationalized by investor overexhuberance, with the market remaining essentially flat for the next several years while it returns to the "basic trend line of the Spending Wave."

Best wishes,

I2
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